Apple Q2 Will Be 'Better-Than-Feared': Analyst Says iPhone Company Has 'Proven Track Record'

An Apple Inc AAPL analyst says results will be "better-than-feared" when the technology giant reports second-quarter financial results Thursday.

The Apple Analyst: JPMorgan analyst Samik Chatterjee maintained an Overweight rating on Apple with a $245 price target.

The Analyst Takeaways: Chatterjee said in a new investor note that fears of demand disruption and cost headwinds from tariffs on China could weigh on Apple stock ahead of quarterly earnings.

"We are positive on AAPL shares with a near-term view into a positive set up into earnings with the likelihood of better-than-feared outcomes in relation to both revenues and gross margins," Chatterjee said.

The analyst expects "modest pull-forward" in demand thanks to consumer upgrades and channel inventory fill.

Chatterjee said revenue will likely be stronger than expected in the second quarter, and momentum could carry over into the third quarter.

Expect Apple to guide to low-single to mid-single-digit revenue growth for the third quarter, he said. The analyst sees lower downside risk for the full financial year than investors expect. Tariffs remain a "significant uncertainty," but Apple's history could overcome the weakness.

"The resilience of revenue and earnings estimates as well as a proven track record of earnings protection in downturns remains key to investors still looking at AAPL shares favorably despite the uncertainty."

Chatterjee said the company's earnings and guidance could show Apple's resilience in the face of tariff worries and the macro environment.

Services growth, AI opportunities and the new iPhone 17 cycle are catalysts that provide "limited downside risks over the medium term," Chatterjee said.

AAPL Price Action: Apple stock is down 0.6% to $207.96 on Monday versus a 52-week trading range of $169.11 to $260.09. Apple stock is down 14.7% year-to-date in 2025, while shares remain up 19.9% over the last year.

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