Apple Stock Faces 'Tariff-Related Headwinds': 4 Analysts Break Down Q2 Results, What's Next

Apple Inc AAPL analysts adjust price targets and earnings estimates after the tech giant announced the impact of tariffs after its second-quarter financial results.

The Apple Analysts: Rosenblatt analyst Barton Crockett downgraded Apple stock from Buy to Neutral and lowered the price target from $263 to $217.

Needham analyst Laura Martin maintained a Buy rating with a $225 price target.

Goldman Sachs analyst Michael Ng maintained a Buy rating and lowered the price target from $259 to $253.

Bank of America analyst Wamsi Mohan maintained a Buy rating and lowered the price target from $240 to $235.

Rosenblatt on AAPL: Tariffs and regulatory concerns bring "too much noise" to Apple stock, Crockett said in a recent investor note.

The analyst said Apple has amazing supply chain skill and saw better demand for iPhones than feared in the second quarter, but is not seeing a big enough acceleration in iPhone sales.

"We're left with a well-run company, with OK-muted growth, a need for an exciting new product to reinvigorate growth trading at a premium multiple, in a choppy tariff and regulatory environment," Crockett said.

Crockett said gross margins see more risk in the face of tariffs.

Outside of tariff concerns, Crockett highlights the upgrade and replacement cycle for iPhones is an argument that is fading.

Needham on AAPL: Quarterly results were strong, while guidance was weak, Martin said in a new investor note.

The analyst said Services revenue growth of 12% year-over-year, hitting a record of $26.6 billion, was the biggest highlight in the quarter.

Martin also highlighted a new $100 billion share buyback, dividend increase, margin expansion, Mac revenue growth and iPad revenue growth as key highlights.

The analyst said China revenue, weak guidance, Wearables and iPhone revenue were the items she liked least in the quarter.

Martin said Apple is also seeing lower growth compared to "Big Tech," showing a chart of Apple's growth compared to Amazon.com, Alphabet and Meta Platforms.

Goldman Sachs on AAPL: Ng lowers Apple earnings per share estimates for fiscal 2025, 2026 and 2027 by an average of 3% after the company's second-quarter results and updated guidance.

The analyst said Apple beat earnings per share in the quarter on Services strength, but product margins now face tariff headwinds.

"AAPL did not provide segment revenue growth commentary likely reflecting uncertainty related to the macro environment, consumer spending, trade policy, and App Store policy changes," Ng said.

Apple guided for a $900 million tariff-related impact in the third quarter, but Ng said that tariff pressure could continue.

"We expect tariff-related headwinds to increase in future quarters, given that inventory costs likely will rise and F3Q represents the smallest iPhone quarter."

The analyst said Apple faces risks like weakened consumer demand, supply chain disruptions, increasing competition and regulatory risks.

Bank of America on AAPL: Tariffs create gross margin headwinds, Mohan said in a new investor note.

The analyst said Apple stock is a buy on earning resiliency and strong capital returns, but near-term uncertainty around tariffs could put pressure on shares.

"The net impact to estimates still remains relatively low despite the impact of tariffs and in our opinion, the ability to navigate sustained tariffs should improve over time," Mohan said.

Mohan said Apple's product gross margins have trended lower year-over-year for five consecutive quarters.

AAPL Price Action: Apple stock is down 3.91% to $205.02 on Friday versus a 52-week trading range of $169.21 to $260.09. Apple stock is down 15.9% year-to-date in 2025.

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