Apple (NASDAQ: AAPL) received a reiterated Buy rating and $325 price target from BofA Securities ahead of its fiscal first-quarter 2026 earnings report, scheduled after market close on Thursday, January 29.

BofA said it saw upside to near-term estimates driven by continued strong iPhone demand and double-digit growth in services revenue. The firm highlighted upcoming catalysts including a foldable iPhone launch expected in the fall and an enhanced Siri powered by Gemini AI, which it said could spur higher upgrade rates.

The analyst noted that Apple shares had underperformed early in 2026 amid investor concerns over rising memory costs but said iPhone demand appeared resilient, with production plans likely to be revised higher. Services revenue was expected to maintain double-digit year-over-year growth despite weaker App Store trends in China.

BofA forecast fiscal Q1 revenue of $140 billion and EPS of $2.69, compared with Street estimates of $138 billion and $2.67, modeling 13% year-over-year revenue growth versus company guidance of 10%-12%. Gross margin was projected at 47.5%, with further expansion expected in fiscal Q2 due to a higher services mix. The firm said Apple remained underweight in investor portfolios, a dynamic it expected to reverse during the year.