Morgan Stanley has indicated that Apple's fiscal second-quarter 2026 earnings, scheduled for release on April 30, could act as a "clearing event" for the stock and help drive its share price toward $300. Analyst Erik Woodring stated in a client report, "We anticipate that upward revenue guidance for the third fiscal quarter will outweigh the impact of lower gross margins, leading to better-than-expected earnings. This could serve as a clearing event ahead of June’s WWDC and September’s iPhone launch." He added, "Although our gross margin forecast remains below consensus due to rising memory chip costs, sustained strength in iPhone, Mac, and services should be sufficient to offset this pressure. This would align the implied third-quarter EPS guidance with market expectations—a positive outcome given relatively low expectations." The analyst maintained an "Overweight" rating on Apple with a $315 price target. He noted that regardless of the actual earnings and guidance, the tech giant is entering a seasonally strong period. Revenue growth is expected to be "robust," potentially reaching around 15%, due to market share gains in multiple regions. Historically, this period ahead of a new iPhone release has been accompanied by valuation multiple expansion. Market expectations for Apple’s upcoming WWDC are described as "low," and reports of a potential foldable iPhone launch this autumn could generate "genuine new product excitement." Additionally, Apple’s "strong" free cash flow sets it apart from competitors who are heavily investing in artificial intelligence. The analyst further commented, "At approximately 28 times next year’s GAAP EPS—roughly the midpoint of Apple’s historical valuation range of 24–34 times—the current valuation is neither cheap nor heavy. However, given our fiscal 2027 EPS estimate of about $10, which is 5% above consensus, we believe the stock could reach $300 by September, driven by moderate multiple expansion and stronger positive EPS revisions." In related news, Apple has announced that current CEO Tim Cook will step down as chief executive on September 1 and transition to the role of executive chairman. John Ternus, currently senior vice president of hardware engineering, will succeed him as CEO. Cook will continue to perform CEO duties through the summer and assist with the transition. As executive chairman, he will remain involved in certain company matters, including engagements with global policymakers. Cook, aged 65, officially took over as CEO in August 2011, succeeding Steve Jobs. Under his leadership, Apple expanded into new product categories such as the Apple Watch, AirPods, and Vision Pro, while significantly growing its services business. The company’s market capitalization has risen from approximately $350 billion when Cook became CEO to around $4 trillion, with annual revenue increasing severalfold. Reports of Cook stepping down had circulated previously, and the official announcement marks the beginning of a new leadership transition cycle for Apple. Analysts suggest that although Cook will remain involved as executive chairman, market attention will focus on the new CEO’s approach to product innovation and strategic direction. Ternus, aged 51, joined Apple in 2001 and has long overseen hardware engineering, making him a key member of the company’s core technical management team. In a statement, he expressed commitment to upholding Apple’s mission and values and conveyed confidence in the company’s future.
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