Goldman Raises Q2 EPS to $2.00, Sees 14% Services Growth for Apple
Apple shares are down year-to-date while the S&P 500 rose 2%, weighed by smartphone margin and DRAM cost concerns. Goldman Sachs projects fiscal Q2 EPS of $2.00 above the $1.93 consensus, forecasts 14% year-on-year Services growth and sees catalysts including WWDC AI Siri features and fall iPhone Fold launch.
1. Fiscal Q2 EPS and Segment Outlook
Goldman Sachs forecasts Apple’s fiscal Q2 EPS at $2.00, exceeding the $1.93 consensus, and anticipates revenue outperformance across iPhone and Mac segments alongside stronger gross margins.
2. Services Growth Drivers
Services revenue is projected to climb 14% year-on-year, supported by prior price increases on Apple TV+, expanded iCloud+ subscriptions, AppleCare+ renewals and solid advertising demand within the App Store and Maps.
3. Margin, DRAM Supply and FX Tailwinds
Favorable foreign exchange rates and Apple’s strategy to secure DRAM supply at competitive pricing are expected to mitigate smartphone gross margin pressure and manage costs effectively.
4. Upcoming Product Catalysts
Investors are eyeing WWDC for new AI-enhanced Siri features and the fall launch of the iPhone Fold, which is described as potentially the most innovative iPhone lineup ever, as key future catalysts.