Apple is once again causing a stir on the stock market. The figures for the fourth fiscal quarter of 2025 have been released and send a clear signal: Apple expects its best results in company history for the upcoming holiday quarter. That alone is enough to impress analysts. But JP Morgan is going even further, raising its price target twice within a week – most recently to $305. The valuation is based on strong products, a promising product cycle, and growing service revenues.
Apple remains one of the world's most valuable technology companies – and consistently manages to impress analysts with strong performance and reliable planning. JP Morgan's recent decision to raise its price target for the stock to $305 is a direct result of this strength. The expected record quarter at the end of the year, solid iPhone demand, and investments in AI are particularly motivating factors. The valuation is correspondingly positive, even though higher operating costs are also a factor.
Apple reports strong quarter – exceeding expectations
The figures for the fourth quarter of 2025 show that Apple remains profitable and continues to grow. While iPhone sales growth fell slightly short of expectations, the overall picture is positive. The company anticipates its best-ever results for the holiday quarter – stronger than during the 5G supercycle and better than during the record-breaking years of the COVID pandemic. This forecast is not arbitrary. It is based on stable demand for current iPhones and a positive outlook for upcoming products.
JP Morgan raises price target for the second time in a week
On Monday, JP Morgan had already raised its price target for Apple to $290. Following the release of the quarterly figures, a further adjustment has now been made – to $305. The rating remains "overweight." The assessment is based on a favorable multi-year product cycle and robust growth in the services business. The analysts see the current performance as the starting point for a longer-term growth phase, supported by several factors.
Growth drivers: iPhone 17, foldable iPhone and AI
Demand for the iPhone 17 remains stable. Analysts view the current generation as a successful upgrade cycle, which is expected to receive an additional boost from the foldable iPhone anticipated at the end of 2026. At the same time, Apple is investing in artificial intelligence – an area with high expectations. This strategic focus contributes to the positive assessment of the company and is a key element in JP Morgan's analysis.
Service business as a stable pillar
Alongside hardware, the service business continues to grow. It is increasingly becoming a key pillar of the overall strategy. Subscriptions, cloud services, the app store, and other services generate regular, high-margin revenues. The combination of a strong hardware base and a growing service sector increases revenue predictability – a point that JP Morgan particularly emphasizes.
Costs are rising – but Apple remains efficient
Operating costs will increase by approximately 19 percent year-over-year. This is due, among other things, to higher investments and increased prices for components such as memory chips. Nevertheless, Apple remains profitable. Gross margins are rising, partly due to price adjustments and efficient supply chain management. Apple is once again demonstrating its operational strength, particularly in dealing with rising memory costs.
The outlook for 2026 is optimistic.
JP Morgan had originally forecast revenue growth of 9 percent for the first quarter of 2026. Apple itself now expects growth between 10 and 12 percent. This new forecast further strengthens analysts' confidence. Expectations for the iPhone 18 series, coupled with developments in the services sector, suggest a continuation of this positive trend.
Apple remains on a successful course
Apple is delivering stable results, demonstrating strong growth, and remaining innovative. The prospect of a record December quarter, the planned launch of new iPhones, and the expansion of its services division create a favorable environment. Despite rising costs, Apple impresses with its high efficiency. The new price target of $305 reflects this overall situation. For JP Morgan, Apple stock is a clear candidate for above-average performance – with an optimistic outlook for the coming year. The best products for you: Our Amazon Storefront offers a wide selection of accessories, including those for HomeKit. (Image: Apple)
Disclaimer: No recommendation for investments
This article does not constitute financial or investment advice. The information contained herein is for journalistic and informational purposes only. Please conduct your own research or consult a financial advisor before making any investment decisions.
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