Goldman Sachs raised its earnings forecast for Apple for the current fiscal year and the next three fiscal years by an average of 3%, with the target price raised to $320

Goldman Sachs report indicates that Apple's (AAPL.US) earnings per share for the fourth quarter of fiscal year 2025, ending in September this year, exceeded expectations, with the Services business outperforming expectations, fully offsetting the impact of lower-than-expected iPhone revenue. The main reason for the iPhone quarterly revenue falling short of expectations is supply constraints, with channel inventory decreasing quarter-on-quarter.

The firm stated that the revenue guidance for the current quarter ending in December is expected to grow by 10% to 12% year-on-year, surpassing expectations, with iPhone revenue guidance indicating double-digit year-on-year growth and Services revenue guidance expected to grow by approximately 14% year-on-year. The company also reiterated its significant increase in AI investments while continuing to invest in its product roadmap, estimating operating expenses for the current quarter to be between $18.1 billion and $18.5 billion, compared to $15.9 billion in the previous quarter. The company's AI investments cover both first-party and third-party computing, reaffirming the launch of an AI-enhanced Siri next year and maintaining an open attitude towards acquisitions to accelerate its roadmap.

The firm raised its earnings per share forecast for the company for the current fiscal year and the next three fiscal years by an average of 3%, based on continuous improvement in gross margins, premiumization, operational leverage, and an increasing proportion of Services revenue. The investment rating is "Buy," with the target price raised from $279 to $320, and the target price-to-earnings ratio increased from 30 times to 32 times, reflecting improved profitability and a continued shift in the business mix towards high-margin Services