Free Cash Flow Boost Raises Apple Price Target to $293.08, Guides 13%-16% Q2 Growth
Apple delivered Q1 results above expectations on robust iPhone and services growth in China, lifting free cash flow projections. The price target rises to $293.08 (12% upside) with a bull-case $324.05 target (24% upside), while Q2 sales are forecast up 13%-16% with 48%-49% gross margins and continued double-digit services expansion.
1. Q1 Results Exceed Expectations
Apple reported first-quarter financial results above consensus, driven by strong iPhone unit growth and double-digit services revenue expansion in Greater China. The company also noted improved free cash flow projections based on higher-than-expected operating margins.
2. Analyst Upgrades Price Target
Analysts raised the price target to $293.08, implying 12% upside, and outlined a bull-case scenario at $324.05 for 24% potential gains, citing sustained cash generation and margin resilience. The revisions reflect confidence in ongoing product demand and recurring service revenues.
3. Fiscal Q2 Outlook
For fiscal second quarter, Apple projects year-over-year revenue growth of 13%-16% with gross margins between 48% and 49%. The guidance anticipates continued double-digit services expansion alongside steady iPhone sales momentum across key regions.