Apple shares closed at a record $268.40 on Friday, capping a 6.2% weekly gain as Wall Street prepared for fiscal second-quarter earnings due after the closing bell on Tuesday. Analyst consensus has migrated higher in recent days, with Services revenue estimates now clustering around $28 billion, up from $25.6 billion a year ago and reflecting a near 9% growth rate that underwrites the company's profit story.
The rally pushed Apple's market capitalization back above $4 trillion, restoring its perch as the most valuable U.S. company. Investors have rotated back into the iPhone maker as China revenue stabilized following last year's tariff-driven decline and as Vision Pro 2 sales have outperformed initial forecasts in the U.S. and Japan.
Services Margins Anchor the Bull Case
The Services segment now generates a gross margin near 75%, more than double the hardware business, and represents roughly 27% of total revenue. App Store, iCloud, Apple Music, AppleCare and advertising all contribute to a recurring revenue mix that has insulated Apple from softer iPhone replacement cycles in mature markets.
Wedbush analyst Dan Ives reiterated his $300 price target Friday, citing what he called the strongest installed base monetization in the company's history. Morgan Stanley raised its target to $290, while Goldman Sachs flagged the potential for an Apple Intelligence-driven upgrade super-cycle in the back half of 2026 as iOS 19 features tied to local AI begin rolling out broadly.
Vision Pro 2 and the AI Roadmap
Vision Pro 2, released in February at a $2,499 price point, has reportedly sold more than 1.4 million units globally according to supply-chain data tracked by IDC. The lighter form factor and expanded developer ecosystem have driven enterprise adoption, particularly in healthcare imaging, industrial design and aviation training markets where the device has gained early traction.
For Tuesday's report, investors will focus on iPhone unit guidance for the September quarter, China gross margin commentary, and any update on the timeline for Apple's rumored partnership with Anthropic for next-generation Siri features. Options markets are pricing a 4.2% post-earnings move, well above the four-quarter average of 3.1%.