NEW YORK, August 5, 2026, 10:07 EDT — U.S. markets open.
- Shares declined 0.5% to $307.80 in early trading on Wednesday, staying 7.7% under their closing level on July 30.
- The market value was roughly $507 billion under its intraday high reached on July 28. The trailing price-to-earnings ratio stayed at 35.3.
- Analysts provided an average price target indicating a 6.2% potential gain. Over the past month, the fiscal 2027 earnings forecast dropped 1%.
Apple shares declined while the broader U.S. market started higher on Wednesday. The company’s valuation adjustment is still limited, with its earnings multiple staying above those of three leading technology rivals.
The market value remains approximately $507 billion lower than its peak in July. The adjustment is not yet finished. Apple continues to have a price-to-earnings ratio of 35.3 based on past earnings.
Mega-cap valuation overview — delayed data as of about 9:52 a.m. EDT.
| Company | Price | Wednesday move | Market value | Trailing P/E |
|---|---|---|---|---|
| Apple NASDAQ:AAPL | $307.80 | down 0.51% | $4.53 trillion | 35.3 |
| Nvidia NASDAQ:NVDA | $219.70 | up 3.66% | $5.36 trillion | 33.4 |
| Microsoft NASDAQ:MSFT | $489.09 | down 0.76% | $3.64 trillion | 29.1 |
| Alphabet NASDAQ:GOOGL | $379.65 | up 0.53% | $4.64 trillion | 19.1 |
Apple trades at a multiple that is 5.7% higher than Nvidia’s. It stands 21.4% greater than Microsoft’s and 85.3% higher than Alphabet’s. The share price is also still 7.7% under where it closed before results at $333.43.
Revenue for the June quarter increased 16.4% to $109.42 billion. Diluted earnings came in at $2.02 per share. Tariff refunds contributed 11 cents per share to earnings and boosted margins by two points.
Fiscal third-quarter results. Figures shown do not include stated tariff refunds.
| Metric | Reported or calculated result | Consensus estimate | Variance |
|---|---|---|---|
| Revenue | $109.42 billion | $108.65 billion | +0.7% |
| Diluted EPS | $2.02 | $1.89 | +6.9% |
| EPS minus refund, calculated | $1.91 | $1.89 | +1.1% |
| Gross margin reported | 50.1% | 47.92% | +218 basis points |
| Gross margin minus refund, calculated | 48.1% | 47.92% | +18 basis points |
The revision alters the earnings outlook. Adjusted EPS exceeded consensus by roughly 1%. Underlying gross margin surpassed by only 18 basis points. Apple projected a September-quarter gross margin between 47% and 48%.
Chief Executive Tim Cook described the supply constraints as “very significant.” Apple is projecting quarterly revenue growth between 9% and 11%. Wall Street analysts had anticipated growth of about 12%. The midpoint of the margin guidance is 60 basis points under the underlying margin for the June quarter. Reuters
Demand varied across segments. Revenue from iPhone and Mac surpassed forecasts, while Services, iPad, and Greater China underperformed.
Performance in operating segments and Greater China.
| Business or region | Revenue | Year-on-year change | Consensus | Variance |
|---|---|---|---|---|
| iPhone | $54.25 billion | up 21.7% | $53.86 billion | 0.7% above |
| Mac | $10.35 billion | rose 28.7% | $8.74 billion | exceeded by 18.4% |
| Services | $30.74 billion | grew 12.1% | $31.22 billion | 1.5% below |
| iPad | $6.19 billion | fell 5.9% | $6.92 billion | 10.5% less |
| Greater China | $18.82 billion | increased 22.4% | $19.67 billion | 4.3% under |
Services accounted for 28.1% of total revenue for the quarter, according to calculations. The segment’s growth fell behind both iPhone and Mac. Gil Luria at D.A. Davidson noted investor concerns that “services are decelerating while iPhone is growing more than 20%.” The product mix is significant. Services is still Apple’s second-biggest source of revenue. Reuters
Analysts continue to have a positive outlook, though views are less concentrated. The number of positive ratings dropped to 32 from 33 over the last month. Hold ratings rose to 15 from 13. The consensus stayed at Overweight.
Analyst ratings and changes in estimates.
| Measure | One month ago | Current | Change or implied return |
|---|---|---|---|
| Buy ratings | 25 | 24 | -1 |
| Overweight ratings | 8 | 8 | No change |
| Hold ratings | 13 | 15 | +2 |
| Underweight ratings | 3 | 2 | -1 |
| Sell ratings | 2 | 2 | No change |
| Consensus | Overweight | Overweight | No change |
| September-quarter EPS estimate | $2.01 | $1.99 | -1.0% |
| Fiscal 2027 EPS estimate | $9.64 | $9.54 | -1.0% |
| Average price target | — | $326.82 | +6.2% |
| Median price target | — | $335.00 | +8.8% |
The consensus target offers little scope for an additional downgrade. Apple is currently valued at approximately 32.3 times projected earnings for fiscal 2027, with a share price of $307.80. Over the last month, that earnings estimate has declined by about 1%.
This is the key point for investors. Robust demand for devices needs to result in actual shipments before expenses impact profit margins. Failing that, Apple’s valuation premium over its rivals could decline further.
Apple has also filed for an injunction targeting OpenAI and two ex-employees, claiming that its hardware trade secrets were misused. OpenAI dismissed the move as unwarranted and said it relies on incorrect information.
Shareholders must be on record by August 10 to receive the dividend, which will be paid on August 13. John Ternus steps into the chief executive role starting September 1. Apple will announce its upcoming earnings on October 29.
Risks: Easing supply constraints may shift delayed shipments into future sales. Ongoing shortages in chips and memory are likely to weigh on margins. A slowdown in Services expansion, modifications to the App Store, and increasing AI expenses could negatively affect forecasts.
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