Apple's Earnings Growth Outlook for the Next Five Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 22 2026
0mins
Should l Buy AAPL?
Source: NASDAQ.COM
- Earnings Growth Forecast: Between fiscal 2022 and 2025, Apple's diluted earnings per share (EPS) is expected to grow at a compound annual rate of 6.9%, with analysts projecting an increase to 11.4% over the next three years, indicating a positive outlook for the company's profitability.
- Strong Financial Results: In the first quarter of fiscal 2026, Apple's revenue surged by 15.7% year-over-year, driven by a 23.4% increase in iPhone sales, which boosted diluted EPS by 18.3%, demonstrating the company's ability to achieve robust growth during innovation cycles.
- Valuation and Market Challenges: With a current price-to-earnings (P/E) ratio of 32.2, achieving a stock price of $500 by 2031 will require improved market sentiment and an expansion of valuation multiples, yet potential deceleration in growth could justify a lower P/E ratio, adding downside risk to the investment thesis.
- Cautious Investor Sentiment: While Apple may experience strong growth in the short term, analysts express skepticism about its long-term performance, suggesting that the likelihood of reaching $500 per share within five years is low, prompting investors to carefully assess its investment value.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 255.630
Low
239.00
Averages
306.89
High
350.00
Current: 255.630
Low
239.00
Averages
306.89
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Position Consolidation: Following the launch of the iPhone in 2007, Apple successfully led the smartphone industry, becoming a cornerstone of modern technology and driving its market capitalization to $3.8 trillion, showcasing its dominance in the global market.
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