Erste Group Bank Analysts Raise Earnings Estimates for Apple

Key Points

• Erste Group Bank raised its FY2026 EPS estimate for Apple to $8.71 from $8.50, which is close to the consensus forecast of $8.73 per share.
• Apple beat Q1 expectations, reporting $2.01 EPS (vs. $1.95 expected) and $111.18 billion in revenue (up 16.6% YoY), and has boosted shareholder returns with a $0.27 quarterly dividend and an additional $100 billion buyback.
• Several brokerages lifted ratings and price targets on Apple, leaving a MarketBeat consensus of Moderate Buy with a $304.31 price target.

Apple Inc. (NASDAQ:AAPL - Free Report) - Investment analysts at Erste Group Bank raised their FY2026 earnings per share estimates for shares of Apple in a research report issued to clients and investors on Tuesday, May 5th. Erste Group Bank analyst H. Engel now anticipates that the iPhone maker will post earnings per share of $8.71 for the year, up from their previous forecast of $8.50. The consensus estimate for Apple's current full-year earnings is $8.73 per share.

Apple (NASDAQ:AAPL - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The iPhone maker reported $2.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.95 by $0.06. Apple had a return on equity of 146.69% and a net margin of 27.15%.The business had revenue of $111.18 billion for the quarter, compared to analyst estimates of $109.46 billion. During the same period last year, the company earned $1.65 EPS. The firm's revenue was up 16.6% on a year-over-year basis.

Other research analysts have also issued reports about the company. Monness Crespi & Hardt lifted their target price on Apple from $315.00 to $335.00 and gave the stock a "buy" rating in a report on Friday, May 1st. BNP Paribas Exane upgraded Apple from a "neutral" rating to an "outperform" rating and set a $300.00 target price on the stock in a report on Friday, April 17th. Wedbush reiterated an "outperform" rating on shares of Apple in a report on Friday. Robert W. Baird set a $310.00 target price on Apple in a report on Friday, May 1st. Finally, KGI Securities upgraded Apple to an "outperform" rating and set a $306.00 price target on the stock in a report on Friday, January 30th. One analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Apple has a consensus rating of "Moderate Buy" and a consensus price target of $304.31.

Apple Stock Down 0.0%

NASDAQ:AAPL opened at $287.40 on Friday. Apple has a 12-month low of $193.46 and a 12-month high of $292.13. The company has a quick ratio of 1.02, a current ratio of 1.07 and a debt-to-equity ratio of 0.70. The firm has a market capitalization of $4.22 trillion, a P/E ratio of 34.75, a P/E/G ratio of 2.51 and a beta of 1.06. The stock's fifty day simple moving average is $261.85 and its 200-day simple moving average is $266.04.

Hedge Funds Weigh In On Apple

Institutional investors and hedge funds have recently made changes to their positions in the company. Overbrook Management Corp grew its stake in shares of Apple by 57.4% in the 4th quarter. Overbrook Management Corp now owns 104,648 shares of the iPhone maker's stock valued at $28,449,000 after buying an additional 38,174 shares during the period. Citizens Financial Group Inc. RI grew its stake in shares of Apple by 48.4% in the 3rd quarter. Citizens Financial Group Inc. RI now owns 1,426,605 shares of the iPhone maker's stock valued at $363,256,000 after buying an additional 465,393 shares during the period. Tufton Capital Management grew its stake in shares of Apple by 4.3% in the 3rd quarter. Tufton Capital Management now owns 100,130 shares of the iPhone maker's stock valued at $25,496,000 after buying an additional 4,157 shares during the period. Montis Financial LLC grew its stake in shares of Apple by 15.8% in the 3rd quarter. Montis Financial LLC now owns 77,919 shares of the iPhone maker's stock valued at $19,841,000 after buying an additional 10,640 shares during the period. Finally, Silver Oak Securities Incorporated grew its stake in shares of Apple by 21.1% in the 3rd quarter. Silver Oak Securities Incorporated now owns 120,674 shares of the iPhone maker's stock valued at $30,727,000 after buying an additional 21,054 shares during the period. Institutional investors and hedge funds own 67.73% of the company's stock.

Insider Activity

In other news, CEO Timothy D. Cook sold 64,949 shares of the company's stock in a transaction that occurred on Thursday, April 2nd. The stock was sold at an average price of $254.23, for a total value of $16,511,984.27. Following the transaction, the chief executive officer owned 3,280,418 shares of the company's stock, valued at approximately $833,980,668.14. This represents a 1.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevan Parekh sold 1,534 shares of the company's stock in a transaction that occurred on Thursday, April 23rd. The shares were sold at an average price of $275.00, for a total value of $421,850.00. Following the completion of the transaction, the chief financial officer directly owned 13,366 shares in the company, valued at $3,675,650. The trade was a 10.30% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 96,485 shares of company stock valued at $24,594,845. 0.06% of the stock is owned by insiders.

Apple Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, May 14th. Stockholders of record on Monday, May 11th will be given a $0.27 dividend. The ex-dividend date of this dividend is Monday, May 11th. This is a positive change from Apple's previous quarterly dividend of $0.26. This represents a $1.08 annualized dividend and a dividend yield of 0.4%. Apple's dividend payout ratio (DPR) is currently 12.58%.

Trending Headlines about Apple

Here are the key news stories impacting Apple this week:

• Positive Sentiment: Strong fundamentals and capital returns — Apple reported a better-than-expected March quarter and the company announced an additional $100 billion share buyback and an upcoming dividend record date, supporting shareholder returns and multiple expansion. A $100 Billion Reason to Buy Apple Stock Here
• Positive Sentiment: Product demand and supply ramp — MacBook Neo demand has outpaced expectations, forcing Apple to double A18 Pro chip production; strong Mac and iPhone sales fuel near-term revenue visibility. Apple’s $599 MacBook Neo could be at risk from rising RAM prices - The Verge
• Positive Sentiment: AI platform strategy gaining traction — Apple plans to let users choose third‑party AI models in iOS 27 and is increasing AI R&D spend (>10% of sales), which investors view as a scalable, ecosystem-friendly route into AI without massive capex. Apple's Next iOS Turns iPhone Into an AI Marketplace
• Neutral Sentiment: Analyst optimism and fund flows — Baird and Bank of America raised price targets and Fisher Asset Management increased its AAPL stake, signaling continued institutional conviction but also higher expectations baked into the stock. Baird and Bank of America Raise Apple (AAPL) Price Targets
• Neutral Sentiment: Potential supply-policy tailwind — A federal court ruling against broad U.S. tariffs limits near-term policy risk to imported components, which could ease cost volatility for global manufacturers like Apple (impact remains situational). Federal Trade Court Rules Trump’s 10% Global Tariffs Were Unlawful
• Negative Sentiment: Legal and reputational headwinds — Apple agreed to a $250 million settlement over claims it misled customers about Siri/AI availability (U.S. iPhone buyers could receive payouts), introducing a near‑term cash charge and headline risk. Apple to pay $250M to settle lawsuit over Siri's delayed AI features
• Negative Sentiment: Antitrust and platform disputes — Rave filed lawsuits in five countries over App Store removal and other developers continue challenging App Store rules; regulatory and legal costs remain a multi-jurisdiction risk. Rave Sues Apple in Five Countries Over App Store Removal
• Negative Sentiment: Supply-cost pressure on low-cost lineup — Rising RAM/memory prices and pulled high‑memory Mac configurations signal potential margin pressure or forced price increases on popular low-cost models (e.g., MacBook Neo), which could temper demand elasticity. Apple’s $599 MacBook Neo could be at risk from rising RAM prices - The Verge
• Negative Sentiment: Regulatory friction over encryption — Apple warned a proposed Canadian bill could force it to weaken device encryption, a policy clash that raises compliance and product design uncertainty. Apple warns Canadian bill could force it to weaken device encryption

Apple Company Profile

Apple Inc NASDAQ: AAPL is a multinational technology company headquartered in Cupertino, California, founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. The company designs, develops and sells consumer electronics, software and services. Over its history Apple has evolved from personal computers to a broad portfolio that spans mobile devices, wearables, home entertainment and digital services.

Apple's principal hardware products include the iPhone smartphone, iPad tablet, Mac personal computers, Apple Watch wearable devices and a range of accessories such as AirPods and HomePod.

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