Analysts surveyed by LSEG forecast Apple’s fiscal first quarter EPS at $2.67 and revenue of $138.48 billion, reflecting year-over-year growth of approximately 11%. The company had previously guided for overall revenue growth of 10%–12%, implying a top-line range between $136.73 billion and $139.22 billion. Despite these bullish projections, Apple’s share price is down nearly 11% from its December 2 peak, suggesting investors are cautious ahead of the report.

Apple signaled strong demand for the iPhone 17 during the holiday season, expecting a similar double-digit growth rate for handset sales in the December quarter. If achieved, unit shipments would represent the company’s best holiday performance since the launch of the iPhone 12, driven by upgrades to the camera system and battery life. Robust iPhone revenue is forecast to account for more than half of total quarterly sales, underscoring the importance of device momentum to Apple’s overall results.

Rising prices for memory and storage components, driven by artificial intelligence–related supply constraints, have prompted scrutiny of Apple’s gross margins. Morgan Stanley analyst Erik Woodring, who maintains a buy rating with a $315 price target, warns that consensus forecasts have not fully incorporated potential margin headwinds from higher operating expenses. While Woodring does not expect a material impact this quarter, investment bank Jefferies has issued a hold rating on Apple, citing rapid memory price inflation as a risk to both consumer and edge AI applications over the next two years.

Investors will seek clarity on Apple’s artificial intelligence roadmap, particularly the recent decision to integrate Google’s Gemini models into its Apple Intelligence platform. CEO Tim Cook is anticipated to highlight a forthcoming Siri overhaul, described internally as “more personal,” and to address how Apple plans to differentiate its on-device AI capabilities. Analysts note that Apple’s late entry into generative AI has left the company reliant on external partnerships, raising questions about its ability to monetize new AI features and maintain its premium device ecosystem.