After a significant dip in the first half of 2025, Apple’s (NASDAQ: AAPL) share price has rediscovered its mojo. Since the end of June, it has jumped from $205 to $258.
Now, looking at the tech stock today, it does look a little expensive. However, taking a medium-term view, I think it can go higher. Here’s my share price forecast for 2026.
High iPhone demand
Apple’s recent results, for the third quarter of FY25, were impressive. For the period, revenue was up 10% year on year to $94bn while earnings per share was 12% higher at $1.57.
Looking ahead, I reckon the strong operational performance here can continue. There are a few reasons why.
The first is that demand for the latest series of iPhones seems to be high. When the latest models were released in September, there were a lot of people queueing globally to get one (unlike in 2024).
And I hear that the ‘Pro’ models have been in high demand. This is good news for Apple because these phones generate more profit for the business.
I’ll point out here that a few well-known analysts believe Wall Street’s currently underestimating the upgrade cycle. One such analyst is Wedbush’s Dan Ives (who has a $310 price target).
In a research note, he said there’s a lot of pent-up demand due to the fact that a lot of people haven’t upgraded their phones over the last four years. He added that iPhone 17 sales are tracking between 10% and 15% ahead of iPhone 16 sales to date.
Strong services
Next, I expect services revenue to remain high. Last quarter, there was 13% growth here but I wouldn’t be surprised if this was to accelerate.
An interesting anecdote – recently I was informed by Apple that I’ve exceeded my 200GB of cloud storage and have to pay for the next plan. The cost? £8.99 instead of £2.99. That’s a huge jump. If lots of consumers are forced to move to this plan in the years ahead as a result of having too many photos/videos on their phones, Apple’s literally going to be printing money.
Buybacks
Finally, we have share buybacks. In May, Apple’s board authorised an additional $100bn for its share repurchase programme (after $100bn last May). That’s a lot of money. And it should support the share price.
My share price forecast
Put all this together, and I think Apple can generate 12% earnings growth this financial year (ending 30 September 2026) and 12% next. That gives us an earnings forecast of $9.24 for FY27, assuming the forecast of $7.37 for the financial year just ended is accurate (it may not be).
Now let’s say that sentiment towards the stock remains bullish and that this time next year the forward-looking price-to-earnings (P/E) ratio is the same as it is today (32). Multiply $9.24 by 32 and we get $296 – just short of $300.
Worth a look?
Of course, my share price forecast could turn out to be wildly wrong. If consumer demand falls sharply or tariffs bite, growth could be far lower than projected.
I’m optimistic about the stock’s medium-term prospects however. To my mind, it’s worth considering on pullbacks.
