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Apple to Report Q3 Earnings Soon

Apple is scheduled to announce its third-quarter results on July 31, amid cautious analyst sentiments.

July 28, 2025 at 06:19 PM

Top Analysts Expect Apple to Report In-Line Q3 Revenue, Say ‘Sentiment Is Negative’ on AAPL Stock

As Apple prepares to reveal its Q3 results, analysts express a cautious outlook influenced by market factors.

Analysts Highlight Concerns Ahead of Apple's Q3 Report

Apple is set to announce its third-quarter Fiscal 2025 earnings on July 31. Top analysts such as Krish Sankar from TD Cowen anticipate revenue growth of around 4% year-over-year, in line with Wall Street expectations. However, analyst sentiment regarding Apple’s stock (AAPL) remains negative due to concerns about its AI strategy, tariff impacts, and regulatory pressures. Sankar projects iPhone sales at 43 million units, though he notes challenges from a declining Chinese market. Bank of America’s Wamsi Mohan echoes these concerns, particularly highlighting tariff-related margin issues and ongoing regulatory investigations. Despite these challenges, both analysts maintain buy ratings on Apple stock.

Key Takeaways

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Apple's Q3 revenue expected to grow by 4% year-over-year.

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Analysts predict 43 million iPhone units sold for Q3 FY25.

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Concerns arise from ongoing regulatory issues and tariff impacts.

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Analysts express negative sentiment about AAPL stock despite revenue expectations.

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Possible revenue beat could arise from a favorable product cycle.

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Market dynamics may limit positive outcomes for the stock.

"Client sentiment is fairly negative due to tariff uncertainty and slow progress in AI."

Analysts point to external pressures impacting Apple's stock performance.

"Apple has about 1.5 years to provide a compelling AI solution."

Krish Sankar emphasizes the urgency for Apple to enhance its AI offerings.

The outlook for Apple ahead of its earnings report is fraught with mixed signals. While revenue is expected to meet projections, the persistent issues surrounding AI development and trade tariffs paint a grim picture for growth. Analysts' cautious optimism about upcoming product launches may not be enough to counterbalance the ongoing negativity from market dynamics. The sentiment suggests investors should stay alert, as factors such as IOs investigation and tariff issues continue to loom large. It makes one wonder: can Apple truly navigate through these turbulent waters successfully?

Highlights

Apple's stock sentiment is notably negative as analysts brace for expected challenges.
Tariff-related issues continue to cast a shadow over Apple's growth potential.
Apple's AI strategy needs improvement to regain positive investor sentiment.
iPhone sales projections offer a glimmer of hope amid broader concerns.

Market Sensitivity Raises Concerns

The uncertainty around tariffs and ongoing investigations into Apple's practices pose potential risks to investors and could affect stock performance.

With various pressures facing Apple, the upcoming report could set the tone for the rest of the year.

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