Apple's Five-Year Outlook and Stock Price Forecast
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy AAPL?
Source: Fool
- Strong Stock Performance: As of March 27, Apple (AAPL) has achieved a total return of 114% over the past five years, significantly outperforming the S&P 500 index, indicating its robust market performance and investment appeal.
- Robust Revenue Source: In the first quarter of fiscal 2026, Apple's iPhone revenue reached $85 billion, demonstrating the continued popularity of its hardware products and further solidifying its market leadership.
- Outstanding Profitability: In fiscal 2025, Apple reported a net income of $112 billion, showcasing its strong profitability as a high-quality business, which supports its ongoing pricing power and customer loyalty.
- Future Stock Price Forecast: Analysts predict that Apple's diluted earnings per share will grow at a compound annual rate of 11.6% between fiscal 2025 and 2028, and if this growth continues, the stock price could reach $410 in five years, translating to an annualized return of 10.5%.
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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: 255.920
Low
239.00
Averages
306.89
High
350.00
Current: 255.920
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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- Strong Market Response: Since its launch last September, the iPhone 17 series has seen a 23% revenue increase in the December quarter, reaching $85.3 billion, indicating strong consumer demand for the new model and bolstering Apple's competitive position in the smartphone market.
- Supply Chain Challenges: Despite robust iPhone sales, analysts warn that shortages of memory chips could lead to rising smartphone prices, potentially impacting demand; IDC predicts smartphone shipments will decline nearly 13% year-over-year to 1.1 billion units in 2026, marking the lowest volume in over a decade.
- Earnings Outlook: Apple's upcoming second-quarter report on April 30 is expected to show a 14.4% revenue increase to $109.1 billion, with adjusted profit rising 19% to $1.96 per share, although the stock is down 5.8% year-to-date, it has performed better than most peers.
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- Acquisition Potential with Apple: Apple could easily afford to acquire Peloton for $3 billion, even assuming a 50% premium, as the tech giant reported a net income of $42 billion in Q1 2026, making the transaction negligible in its financials.
- Brand Integration Advantages: Peloton's fitness equipment could be showcased in Apple stores, enhancing Apple's hardware offerings, and the integration of Peloton's digital app into Apple Fitness+ could improve user experience, akin to the successful Beats acquisition in 2014.
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- Health Strategy Alignment: Peloton's fitness equipment aligns well with Apple's health ambitions, as CEO Tim Cook stated that improving human health is Apple's greatest contribution, suggesting that acquiring Peloton could enhance Apple's hardware offerings.
- Limited Market Opportunity: Despite Peloton's strong reputation in the fitness industry, its addressable market may be too small, coupled with declining revenue and subscriber numbers, which could lead Apple to avoid the potential headaches of such an acquisition.
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- Cautious Market Response: Despite Trump's threats causing a slight rise in oil prices, the S&P 500 rose for the fourth consecutive day as investors weighed the possibility of de-escalation, indicating cautious optimism in the market.
- AI Momentum: Broadcom's expanded chip partnership with Google and Anthropic underscores strong demand for AI infrastructure, becoming a key market driver that may influence the performance of related tech stocks.
- Field Observation Report: Citrini Research sent an analyst to the Strait of Hormuz, discovering that despite tensions, around 15 ships are still passing daily, suggesting that the critical oil artery's transport activity is not completely halted, which could affect market expectations for oil prices.
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- Expanded Collaboration with Anthropic: Broadcom's expanded deal with AI startup Anthropic provides approximately 3.5 gigawatts of computing capacity utilizing Google's AI processors, significantly boosting Anthropic's computational resources and supporting the further development of its AI applications.
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- Future Demand Expectations: Broadcom CEO Hock Tan indicated that demand for computing power from Anthropic is expected to exceed 3 gigawatts by 2027, a forecast that not only highlights the rapid growth of the AI market but also supports Broadcom's long-term strategic development.
See More
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- Computing Capacity Expansion: Broadcom signed an expanded deal with AI startup Anthropic to provide approximately 3.5 gigawatts of computing capacity using Google's AI processors, addressing the surging demand for generative AI models.
- Revenue Growth Expectations: Analysts project that Broadcom will generate $21 billion in AI revenue from Anthropic in 2026, with this figure expected to rise to $42 billion in 2027, indicating strong market demand and the company's future profit potential.
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