Apple's momentum built on iPhone 17 demand and strong guidance for the December quarter has prompted JP Morgan to up its price target to $305, the second increase in a week.
Several records were broken with Apple's Q4 2025 earnings, and even though iPhone growth wasn't as high as analysts hoped, at least one is more bullish than ever. Apple shared that it expects its December quarter to be its best yet, breaking records set during the 5G supercycle and the COVID outbreak.
According to a note from JP Morgan seen by AppleInsider, Apple is set to ride a wave of growth driven by AI investment, continued interest in iPhone upgrades, and the future foldable iPhone expected in late 2026. The only downside noted is Apple's operating expenses will continue to grow, approximately 19% year over year.
However, Apple is expected to offset any growth in expenses through increased gross margins and services revenue. The revenue growth forecasts are raised on the momentum that is expected to be sustained through the iPhone 18 series.
JP Morgan previously guided for Apple's Q1 2026 to see a growth of around 9%, but Apple's guided growth is closer to 10% to 12%. Some of this is also attributed to Apple's skills in supply chain management that helps mitigate things like increasing memory costs.
Apple's holiday quarter has historically always been its strongest, though breaking records isn't always a guarantee. The company's sharing that it expects to with its guidance has obviously driven investors to be more bullish.
Even the stock market took an unexpected positive turn post earnings — a rarity for Apple.
JP Morgan shared it had raised its stock target on Monday to $290, and here it is again raising the target on good earnings results. Its rating is overweight with a favorable multi-year product cycle and robust services growth, leading to a raise in price target to $305.
