Goldman Sachs has adjusted its outlook on Apple Inc. (AAPL), reducing the stock’s price target from $370 to $360 following the company’s recent earnings report. This revision comes shortly after the firm had elevated its target from $340 to $370, reflecting a reassessment of Apple’s near-term performance.
In a note to investors, Goldman Sachs analysts indicated that they anticipate Apple’s stock to trade lower than previously expected. This adjustment is attributed to concerns over the performance of Apple’s App Store, which has been experiencing a deceleration in growth. Despite this, the analysts maintain a positive long-term view, emphasizing that Apple is implementing strategies aimed at sustaining its growth trajectory.
Prior to the earnings release, Goldman Sachs had expressed optimism about Apple’s third-quarter results, citing strong demand for products like the iPhone and Mac, as well as robust services revenue. The firm had projected a 17% year-over-year increase in revenue, expecting iPhone sales to reach $54.8 billion, up 23% from the previous year. This optimism was based on factors such as a 7% annual growth in the average selling price and overall unit growth.
However, the recent earnings call prompted a more cautious stance. The analysts highlighted that while Apple’s hardware segment continues to perform well, the slowdown in App Store growth poses a challenge. They noted that product-related services like iCloud+ and AppleCare+ are still contributing positively, but the overall services segment’s momentum has been affected.
Goldman Sachs also pointed out potential risks, including market softening, supply chain disruptions, competition from other vendors, and regulatory challenges both in the U.S. and internationally. These factors have contributed to the decision to lower the price target.
It’s worth noting that this is not the first time Goldman Sachs has adjusted its price target for Apple in 2026. In January, the firm increased the target to $330, followed by a raise to $340 in May, and then to $370 just days before the latest earnings report.
For investors, this revision underscores the importance of closely monitoring Apple’s services segment, particularly the App Store’s performance. While the company’s hardware sales remain strong, the services division is a critical component of Apple’s growth strategy. The slowdown in App Store growth suggests that Apple may need to explore new avenues to invigorate this segment and maintain its overall growth momentum.
