Apple Inc. (NASDAQ:AAPL) shares are trading higher Friday after the company reported better-than-expected first-quarter earnings.
Revenue for the quarter came in at $124.3 billion, beating analyst estimates of $124.13 billion. Adjusted earnings per share also exceeded expectations at $2.40, compared to the estimated $2.36. This marks the eighth consecutive quarter Apple has beaten analyst estimates on both revenue and earnings.
Despite iPhone sales slipping slightly year over year to $69.14 billion from $69.7 billion, overall revenue climbed 4%. The company’s services segment, which includes subscriptions and digital offerings, reached $26.34 billion, up from $23.12 billion last year. Apple’s installed base of active devices also hit an all-time high, providing further confidence in the company’s long-term ecosystem strength.
Following Apple’s better-than-expected first-quarter earnings, several analysts raised their price targets on the stock:
- Goldman Sachs – Buy, price target raised from $280 to $294
- BofA Securities – Buy, price target raised from $253 to $265
- Morgan Stanley – Overweight, price target raised from $273 to $275
- JP Morgan – Overweight, price target raised from $260 to $270
- Evercore ISI Group – Outperform, price target raised from $250 to $260
- Needham – Buy, price target maintained at $260
- Barclays – Underweight, price target raised from $183 to $197
- Jefferies – Underperform, price target raised from $200.75 to $202.33
CEO Tim Cook highlighted the company’s continued innovation in artificial intelligence, branding it “Apple Intelligence,” and emphasized the upcoming expansion of these capabilities in April. The company also announced a quarterly cash dividend of 25 cents per share, payable on Feb. 13.
AAPL Price Action: Apple shares were up 1.30% at $240.67 at the time of writing, according to Benzinga Pro.
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