Evercore ISI has removed Apple (NASDAQ:AAPL) from its tactical outperform list following the company's December quarter earnings report. The move comes after Apple delivered a quarter that topped Wall Street estimates and showed marked strength across hardware and Services lines.
Apple is currently valued at $3.79 trillion and carries a Piotroski Score of 9, according to InvestingPro data, a metric that signals strong financial health.
For fiscal Q1 2026, Apple reported revenue of $143.8 billion and diluted earnings per share of $2.84, outpacing consensus expectations of $138.4 billion in revenue and $2.67 in EPS. Total revenue rose 15.7% year-over-year, with iPhone revenue accelerating 23% and Services revenue increasing 13.9%.
Gross margins reached 48.2% for the quarter, an improvement of 130 basis points versus the year-ago period and above the range management had outlined. Company commentary accompanying the results noted that supply constraints curtailed its ability to meet all demand this quarter, and those constraints are expected to persist into the next quarter.
Looking toward the March quarter, Apple guided to year-over-year revenue growth of 13% to 16%, a pace above the roughly 10% growth analysts had anticipated. Management emphasized continued strong iPhone demand and ongoing double-digit Services growth even in the face of product supply limitations.
Despite removing Apple from its tactical outperform list, Evercore ISI kept its Outperform rating intact and reaffirmed a $330 price target, saying the stock remains one of its top picks for calendar year 2026.
Other brokerages reacted to the quarter with upward adjustments to their views and targets. KeyBanc Capital Markets highlighted the acceleration in iPhone sales as a principal contributor to the quarter, citing a 23% increase in iPhone revenue and an 18% rise in EPS.
In the wake of the results, JPMorgan raised its price target on Apple to $325, pointing to healthy margins and a reduction in investor concerns about memory-related impacts on gross margins and a slowdown in Services revenue. Rosenblatt Securities increased its target to $267, noting that iPhone demand outstripped both company guidance and production capacity.
TD Cowen reiterated a Buy rating with a $325 price target, calling out potential upside from AI-enabled Siri developments and strong revenue projections, and projecting 13% to 16% year-over-year revenue growth by March 2026. DA Davidson kept a Neutral rating and a $270 price target while acknowledging the robustness of the quarterly performance.
Analysts' reactions collectively signal continued positive sentiment around Apple's financial health and near-term prospects. TD Cowen specifically suggested that Apple's collaboration with Gemini and enhancements to AI-driven Siri functionality could help extend the iPhone upgrade cycle into 2027.
The quarter's results, management guidance, and follow-on analyst commentary are likely to influence investor views across several market segments, including consumer electronics, software and digital services, and supply-chain dependent manufacturing.
Note: This article presents the companies' reported figures and analysts' stated positions without alteration.