Apple Forecasts Up to 17% Q3 Growth; Goldman Lifts Target to $340
Apple forecast Q3 revenue growth of 14% to 17%, surpassing the 9.1% analyst consensus and sending shares up nearly 4% after Q2 sales hit $111.2 billion with $2.01 earnings per share. Goldman Sachs raised its 2026 price target to $340 from $330, citing sustained product momentum and improving margins.
1. Q2 Results Surpass Expectations
Apple reported fiscal second-quarter sales of $111.2 billion, up 17% year-over-year and above the $109.7 billion consensus. Earnings per share came in at $2.01 versus the $1.96 estimate, driven by iPhone revenue of $57 billion (+22%), Mac revenue of $8.4 billion, iPad at $6.9 billion and services at $31 billion.
2. Q3 Revenue Outlook Exceeds Consensus
Management set third-quarter revenue growth guidance at 14% to 17%, well above the 9.1% average analyst forecast. The stronger outlook propelled shares up nearly 4% in late trading, reflecting robust demand momentum across key product lines.
3. Supply Constraints and Rising Costs
Apple warned that memory-chip costs will rise significantly this quarter and that shortages of Mac mini and Mac Studio models could continue for several months. Demand for AI-capable devices and the low-cost MacBook Neo outpaced supply forecasts, highlighting ongoing semiconductor bottlenecks.
4. Analyst Target Revision and Capital Returns
Goldman Sachs raised its Apple price target for 2026 from $330 to $340, pointing to steady demand and a near-49% gross margin. The company also authorized up to $100 billion in additional share repurchases and plans to increase its dividend.