Apple Is Likely to Return to Double-Digit Revenue Growth in Fiscal 2026 -- and the Stock Looks Like a Buy

Core Insights - Apple's annual sales volume remained stagnant between fiscal 2022 and fiscal 2024, with a slight decline observed. However, recent results and a positive outlook for the holiday quarter indicate a potential end to this period of suppressed sales [1][2]. Group 1: Financial Performance - In fiscal Q4 2025, Apple reported revenue of $102.5 billion, reflecting an 8% year-over-year increase, driven by strong iPhone sales and double-digit growth in services [2]. - The company anticipates a revenue growth rate of 10% to 12% year-over-year for fiscal Q1, with iPhone revenue expected to grow at a double-digit rate [4]. - The holiday quarter is projected to be significant for Apple, marking the first full quarter of sales for the latest iPhone lineup, which is expected to drive sales throughout the fiscal year [5]. Group 2: Services Segment - Apple's services segment, which includes high-margin revenue from app sales, subscriptions, and native services, experienced a 15% year-over-year growth in fiscal Q4 [6]. - The gross margin for the services segment was reported at 75.3% in fiscal Q3, significantly higher than the 36.2% gross profit margin of Apple's product segment [7]. - Management expects the services revenue to continue its double-digit growth into fiscal 2026 [6][8].