Apple's stock price reached a new all-time high on Friday following the company's announcement of a stronger-than-expected sales forecast for the upcoming holiday season. The tech giant projects its December quarter revenue will be the best in its history, signaling robust consumer demand for its latest products.
The optimistic outlook came after Apple reported solid financial results for its fiscal fourth quarter, surpassing Wall Street estimates despite facing supply chain challenges for some of its popular iPhone models. The news prompted a flurry of positive revisions from market analysts.
Key Takeaways
- Apple (AAPL) stock touched a new record high of $277.32 during Friday's trading session.
- The company forecasts record-breaking revenue of approximately $138 billion for the December quarter, an 11% year-over-year increase.
- This projection significantly exceeds analysts' prior expectations of a 6% rise to $131.8 billion.
- The strong guidance follows a successful fourth quarter where Apple earned $1.85 per share on $102.5 billion in sales.
A Landmark Forecast for the Holiday Season
Apple's leadership has set high expectations for the final three months of the year, a critical period for the consumer electronics company. Management projects that total revenue for its fiscal first quarter will grow between 10% and 12% compared to the same period last year.
At the midpoint of that range, Apple's revenue would reach an unprecedented $138 billion. This figure comfortably beats the consensus analyst forecast, which had anticipated a more modest 6% growth to $131.8 billion.
"We are incredibly excited about the strength we're seeing across our products and services, and we expect the December quarter's revenue to be the best ever for the company and the best ever for iPhone," Apple CEO Tim Cook stated during a call with analysts.
Cook emphasized the company's strong position heading into the competitive holiday shopping season. "We are heading into the holiday season with a truly remarkable lineup," he added, alluding to the new suite of iPhones and other devices launched in the fall.
Reviewing a Resilient Fourth Quarter
The confident forecast was built on a foundation of solid performance in the preceding quarter. For the fiscal fourth quarter, which concluded on September 27, Apple reported impressive growth metrics.
Q4 Financial Highlights
- Total Sales: $102.5 billion (an 8% increase year-over-year)
- Earnings Per Share: $1.85 (a 13% increase year-over-year)
These results were achieved even as the company acknowledged being supply-constrained on certain iPhone models, suggesting that underlying demand was even stronger than the reported numbers indicate. The ability to grow both revenue and earnings by significant margins despite operational hurdles underscores the company's market strength.
Wall Street Reacts with Optimism
The combination of a strong quarterly report and an exceptional forecast prompted immediate and widespread positive reactions from the financial community. Following the announcement, at least 20 Wall Street analysts raised their price targets for Apple stock.
Ben Reitzes, an analyst at Melius Research, described the company's guidance as a "mic drop" moment. He maintained a buy rating on the stock and significantly increased his price target from $290 to $345.
Similarly, JPMorgan analyst Samik Chatterjee noted that the upgrade cycle for the new iPhone 17 appears to be stronger than many had anticipated. He raised his price target to $305 from $290, maintaining an overweight rating.
Future Growth Catalysts
Analysts are also looking ahead to potential future revenue drivers. Chatterjee pointed to the anticipated launch of an AI-enhanced Siri personal assistant and the long-rumored foldable iPhone as key innovations that could help sustain sales momentum in the coming years. This aligns with a broader trend among tech giants like Microsoft, Google, and Meta, which are all investing heavily in artificial intelligence capabilities.
Market Volatility Amidst New Highs
The initial market response was enthusiastic. In morning trading on Friday, Apple shares surged to a new record price of $277.32. However, the stock experienced some volatility throughout the day.
Despite the early gains, the momentum did not fully hold. By the close of the regular trading session, Apple's stock had retreated from its peak, ending the day at $270.37, a slight decrease of 0.4%.
This fluctuation highlights the complex dynamics of the market, where even overwhelmingly positive news can be met with profit-taking and broader market pressures. Nevertheless, the new record high and the overwhelmingly bullish sentiment from analysts signal strong confidence in Apple's strategic direction and its ability to continue delivering growth.
