TLDR
- AAPL stock held near $338 before Apple’s fiscal third-quarter earnings report.
- Analysts expect revenue of about $108.9 billion and earnings of $1.89 per share.
- Apple’s $5 trillion valuation raises the pressure for stronger-than-expected results.
- Services growth, China demand and gross margin guidance remain key areas to watch.
- Rising memory costs could pressure margins and lead to higher device prices.
Apple shares (AAPL) traded near $338 before the company’s fiscal third-quarter earnings report. Investors will review iPhone demand, Services growth, memory costs, and the leadership change.
The stock fell 0.56% to $338.19 before recovering to $338.61. Apple touched a $5 trillion market value, while AAPL stock has gained 25% in 2026.
Revenue Growth Faces a High Bar
Wall Street expects Apple to report revenue of $108.9 billion. That would rise from roughly $94 billion a year earlier. Analysts expect diluted earnings of about $1.89 per share. Apple reported $1.57 a year earlier. Management projected revenue growth between 14% and 17%. It also guided for a gross margin of 47.5% to 48.5%.
Apple has beaten forecasts for eight straight quarters. The current valuation may require more than a small beat. The stock trades near 40 times trailing earnings. Its 10-year average is closer to 25 times.
AAPL Stock Depends on Services and China
Services remains central to Apple’s growth. The segment includes the App Store, iCloud, Apple Music, AppleCare and payments. Services revenue rose 16.3% to a record $30.98 billion last quarter. Analysts expect 14% to 15% growth this quarter. Investors will also track Greater China revenue. Sales rose 28% to $20.5 billion during the fiscal second quarter.
Recent shipment data showed stronger iPhone demand in China. However, some purchases may have occurred before expected price increases later in 2026. Apple received approval to offer Apple Intelligence in Greater China using Alibaba’s Qwen technology. The rollout may support future demand but add little to current results.
Memory Costs Put Pressure on Margins
Higher memory prices are a near-term concern. Apple raised prices on several Mac and iPad models after component costs increased. Analysts also expect possible iPhone price increases. Higher prices may protect margins but could slow upgrades.
Investors will watch Apple’s outlook for the September and December quarters. A gross margin near the upper end of guidance could ease concerns. Apple continues to spend less on AI infrastructure than technology rivals. Annual capital spending is expected near $11 billion. The company depends more on outside models, cloud partners and on-device processing. Investors will seek updates on Siri and Apple Intelligence.
Earnings Could Test Key AAPL Levels
Apple’s four-hour chart is bullish. The stock trades above its moving averages. Support sits near $334 to $336. Further support appears near $331, $328, and $320. The first resistance level stands near $343. A clear break could open a move toward $350 to $352.
Options traders expect a move of about 4% after earnings. That creates a range between $325 and $352. Tim Cook is expected to lead his final earnings call as CEO. John Ternus will take over on September 1, adding leadership questions.
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