<p>While <strong>Apple </strong><span class="ticker-mention inline-flex items-center font-bold">(AAPL <span class="ml-1 text-green-900">+0.62%</span>)</span> saw its fiscal first-quarter revenue soar, the stock barely budged after the company reported its results. The stock is up less than 10% over the past year and down about 5% on the year, as of this writing.</p><p>With iPhone sales suddenly accelerating, is now a good time to buy the stock?</p><section><div><div><div><small><div>Expand</div></small></div><div><img alt="Apple Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0FBUEwucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0FBUEwucG5nJnc9MTI4"/></div><div><h2>NASDAQ: AAPL</h2><div>Apple</div></div></div><div><div><div>Today's Change</div><div>(0.62%) $1.60</div><div>Current Price</div><div>$259.88</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$3.8T</div><div>Day's Range</div><div>$252.22 - $261.90</div><div>52wk Range</div><div>$169.21 - $288.62</div><div>Volume</div><div>3.5M</div><div>Avg Vol</div><div>47M</div><div>Gross Margin</div><div>47.33%</div><div>Dividend Yield</div><div>0.40%</div></div></div></div></section><h2><strong>iPhone momentum continues</strong></h2><p>After a couple of years of sluggish sales, Apple's recent iPhone momentum continued in its fiscal Q1, with the company posting its strongest revenue growth since shortly after the pandemic in 2021.</p><p>The iPhone is Apple's biggest source of revenue, making up nearly 60% of its sales in the quarter. Sales soared for the smartphone in fiscal Q1 2026, climbing 23% to $85.27 billion and coming in well ahead of analyst expectations for $78.65 billion in iPhone revenue, as compiled by <strong>LSEG</strong>. CEO Tim Cook called demand for the iPhone &#34;staggering.&#34; </p><div><div id="foolcom_sidebar_top_container"></div></div><p></p><p>Sales of Apple's other products were mixed. iPad sales rose 6% to $8.6 billion, with half of its customers new to the product. However, Mac sales fell 7% year over year to $8.4 billion, while wearable revenue slipped 2% to $11.5 billion.</p><div><div><div><div></div></div></div></div><p>Total product segment sales increased by 16% to $113.7 billion. China was an area of strength, with revenue climbing 38%. Apple's services segment -- which consists of its App Store, iCloud storage, Google Search revenue sharing, Apple Pay, Apple TV, and more -- meanwhile, saw revenue jump by 14% to $30 billion.</p><div><div id="in_line_article_pitch_container"></div></div><p>Product gross margin rose by 450 basis points sequentially to 40.7%, while service margin increased by 120 basis points sequentially to 76.5%. Overall gross margin was 48.2%. Despite rising memory prices, Apple expects to keep gross margin in line in Q2, with it projected to be between 48% and 49%. </p><p>Overall, Apple's revenue climbed by 16% to $143.76 billion, while its earnings per share (EPS) jumped 19% to $2.84. That topped the analyst consensus estimates for EPS of $2.67 on sales of $138.48 billion.</p><p>For fiscal Q2 2026, Apple expects its revenue to grow by 13% to 16% year over year, with services revenue rising at a comparable level to fiscal Q1.</p><div><img alt="A hand holding a smartphone displaying a payment screen." width="880" height="539" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NTM3NTEvZ2V0dHlpbWFnZXMtMTE1ODc3OTA2MS5qcGcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NTM3NTEvZ2V0dHlpbWFnZXMtMTE1ODc3OTA2MS5qcGcmdz0zODQw"/><p>Image source: Getty Images.</p></div><h2>Is it time to buy Apple stock?</h2><p>Apple has remedied its biggest areas of weakness -- sluggish iPhone sales and a weak China -- and it is seeing some of its best growth in several years. However, the stock has not moved much on this improvement.</p><p>This can largely be attributed to its valuation. The stock climbed through a period of pretty lackluster results, pushing up its valuation multiple. Today, it trades at a forward price-to-earnings (P/E) ratio of around 31 based on analysts' estimates for fiscal 2026 (which will end in September) and 28 times fiscal 2027 estimates. That's more expensive than many of the &#34;Magnificent Seven&#34; stocks.</p><p>As such, the stock looks appropriately priced at this point. This could limit some of its upside, despite its strong operational momentum.</p><div id="article_pitch_container"></div><div id="promobox_container"></div>

AAPL

RSPT

AAPX

AAPU

AAPB

<p>Apple's fiscal Q1 revenue surged 16% to $143.76 billion, driven by a 23% increase in iPhone sales, which accounted for nearly 60% of total sales. Despite strong growth, the stock has seen minimal movement, trading at a forward P/E ratio of around 31. Analysts expect revenue growth of 13% to 16% in Q2 2026. While Apple has improved its performance in key areas, its current valuation may limit further upside potential for investors considering buying the stock.</p>

- Apple reported a 16% increase in fiscal Q1 revenue to $143.76 billion, driven largely by a 23% surge in iPhone sales, which accounted for nearly 60% of total revenue.  
- Despite this growth, the stock has seen little movement due to its high valuation, trading at a forward P/E ratio of around 31.  
- Looking ahead, Apple expects revenue to grow by 13% to 16% year-over-year in Q2 2026, indicating stable operational momentum amidst mixed results from other product lines.

Is It Time to Take a Bite Out of Apple's Stock as Revenue Growth Accelerates?