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With Apple (AAPL) rolling out a public preview of iOS 26, boasting a “Liquid Glass” design and modest upgrades, investors are left wondering whether now is the time to reconsider AAPL stock. Notably, Apple has emerged as the worst-performing member of the Magnificent Seven in 2025, with shares down approximately 16% year‑to‑date (YTD).
While sluggish growth, limited artificial intelligence (AI) monetization, and tariff-related headwinds have surfaced, some analysts view the current dip as a buying opportunity based on Apple’s ecosystem strengths. Meanwhile, others express concerns about AAPL, citing its premium valuation amidst uncertain catalysts.
So, is Apple stock poised for a turnaround? Or is now the moment to sell, or simply hold and wait?
About Apple Stock
Headquartered in California, Apple is a futuristic company and a global leader across hardware, software, and services, including flagship products such as the iPhone, iPad, Mac, Apple Watch, and services like the App Store, iCloud, Apple Music, and Apple TV+. Apple commands a market capitalization of $3.1 trillion, ranking as the world’s third-most valuable public company, trailing only Nvidia (NVDA) and Microsoft (MSFT) .
AAPL stock’s performance in 2025 has been notably disappointing, with shares falling and underperforming its elite group. While Nvidia, Microsoft, and Meta Platforms (META) have posted gains of at least 20% or more YTD, Apple has lagged as investor concerns mount over soft iPhone sales (particularly in China), and broader macroeconomic challenges.
Nevertheless, over the past month, AAPL stock has gained 2%, signaling a potentially revived interest among investors and tentative stabilization.
Despite the downslide, AAPL is still trading at a premium at 30 times forward earnings, compared to the sector median and its historical average.
Apple Delivered Stable Q2 Performance
Apple unveiled its second-quarter 2025 results on May 1. For the period, Apple reported revenue of $95.4 billion, a 5% year-over-year (YOY) increase, and EPS of $1.65, up nearly 8% from the previous year.
The company’s Services segment delivered strong momentum, growing 11.6% YOY to a record high of $26.6 billion, while Product sales rose 2.7%, led by modest gains in iPhone and Mac, and impressive iPad growth of around 15.2%. Wearables, Home and Accessories declined 4.9% compared to the year-ago quarter, as last year’s Vision Pro launch created a high comparative base.
Apple acknowledged persistent headwinds from U.S.‑China trade tensions and tariff-related issues. In response, the company continues to shift iPhone production to India and other product lines to Vietnam to mitigate exposure and diversify its supply chain.
Apple is expected to report its Q3 earnings results on Thursday, July 31, after the market closes. Management guides for low‑to‑mid single‑digit annual revenue growth for the quarter, with gross margins expected to be between 45.5% and 46.5%, while incorporating the estimated $900 million tariff impact.
Analysts covering Apple predict that the company’s Q3 EPS will rise by 1.4% YOY to $1.42. Further, the consensus estimate of $7.11 for fiscal 2025 indicates an increase of 5.3% YOY, before improving by around 8% annually to $7.69 in fiscal 2026.
Spotlight on the iOS 26 Beta Preview
Apple recently released the public beta version of its upcoming iPhone operating system, iOS 26, offering users an early look at what’s to come ahead of the official rollout this fall. The update introduces “Liquid Glass,” a major redesign of the user interface that replaces traditional buttons and menus with translucent, responsive, animated elements, marking the most significant visual overhaul since iOS 7 in 2013.
In addition to aesthetic changes, iOS 26 brings several new features, including a revamped Phone app that merges recent calls and voicemails, enhanced spam call and text filtering, real-time translation in iMessage and FaceTime, and more. However, the highly anticipated Siri upgrades promised in 2024 are notably missing and are now expected no earlier than 2026, which was a disappointment for investors.
What Do Analysts Expect for Apple Stock?
Analysts remain divided on Apple stock, reflecting a mix of cautious skepticism and bullish conviction as the company navigates AI delays and competitive pressures.
Citi analysts reaffirmed a “Buy” rating with a $240 price target, citing confidence in iPhone unit sales growth in the June quarter. Meanwhile, Goldman Sachs recently reiterated its “Buy” stance with a price target of $253, indicating a cautiously bullish outlook amid a volatile macro backdrop.
On the other hand, Jefferies has taken a more cautious tone. It has upgraded Apple from an “Underperform” to a “Hold,” raising the target from $170.62 to $188.32. The upgrade was driven by expected strong revenues in Q3, boosted by tariff-driven pull-in demand and China market recovery. However, Jefferies warned that the iPhone 17 lacks compelling new features and may lead to flat unit growth in the second half.
AAPL stock has a consensus “Moderate Buy” rating overall, indicating confidence tempered with caution. Out of 37 analysts covering the tech stock, 18 recommend a “Strong Buy,” three give a “Moderate Buy,” 14 analysts stay cautious with a “Hold” rating, and two have a “Strong Sell” rating.
The average analyst price target for AAPL is $231.46, indicating potential upside of 10%. Meanwhile, the Street-high target price of $300 suggests as much as 44% upside from current levels.
