Apple expected to beat Q3 estimates; BofA sees margin dip as transitory
Bank of America (BofA) predicts Apple will exceed consensus estimates for its fiscal third quarter, forecasting revenue of $109 billion and EPS of $1.89, above Street estimates of $108 billion and $1.87. The bank notes robust iPhone build plans but factors in a conservative outlook due to a staggered launch schedule: Pro, Pro Max, and a foldable model in September, with base and Air models in March. BofA views a projected product gross margin decline of 190 basis points in Q3 and 280 basis points in Q4 as transitory, expecting recovery to 38.5% in the December quarter driven by higher-priced new iPhones and potential tariff recovery. Services revenue growth is expected at 14% year-over-year, with App Store slowdown offset by iCloud and licensing strength. BofA reiterates a Buy rating with a $380 price target. Apple reports Q3 results on July 30.
Editorial responsibility
- No named human review is recorded for this page.
- Reports are grouped by semantic similarity and deterministic rules. Language models may assist titles, summaries, translation and cross-source analysis; the page itself is projected from evidence records.
- Current automated evidence projection