Apple (AAPL) has done it again. The iPhone maker briefly crossed a staggering $5 trillion market capitalization this week, becoming the second only publicly traded company after Nvidia Corporation (NVDA) to reach that milestone.
The journey has been remarkably fast. Apple crossed the $3 trillion mark in early 2022, topped $4 trillion in late 2025, and has now reached $5 trillion in less than a year. Very few companies have ever added $1 trillion in market value that quickly.
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This achievement came at the perfect time. Apple is set to report fiscal third-quarter earnings on July 30, after the market close, and analysts are betting the company can once again deliver strong results. The stock has made it one of the best-performing Magnificent Seven stocks in 2026.
But after such a massive rally and a record valuation, is there still room for Apple shares to move higher?
Apple Stock Has Outperformed Big Tech This Year
Apple stock has quietly pulled ahead of most of its mega-cap peers in 2026. Shares have surged 22.38% year-to-date (YTD) and 14.97% in July alone, driven by resilient iPhone demand, expanding Services revenue, and investor appreciation for the company's disciplined capital spending.
www.barchart.com Unlike rivals that have committed hundreds of billions of dollars to artificial intelligence infrastructure, Apple has taken a much more measured approach. Analysts estimate Apple's annual capital expenditures will remain near $11 billion while hyperscalers continue pouring more than $700 billion into AI-related investments.
That spending discipline has helped reassure investors concerned about shrinking returns from aggressive AI investments. At the same time, Apple's ecosystem of more than two billion active devices continues to generate recurring revenue through products such as iCloud, Apple Music, AppleCare, and the App Store.
However, the company's record valuation also means expectations are exceptionally high.
Apple currently trades at a trailing price-to-earnings ratio of 24.22 times.
That premium can be justified if earnings continue growing at a healthy pace. However, any disappointment in iPhone demand, Services growth, or forward guidance could pressure the stock after its recent run.
All Eyes Are on Apple's Upcoming Earnings
Wall Street expects Apple to report another solid quarter.
Analysts forecast fiscal third-quarter earnings of about $1.88 per share on revenue between $108.8 billion and $109 billion. That would represent 19.75% earnings growth from a year earlier alongside revenue growth of approximately 16%.
The iPhone is expected to remain Apple's biggest revenue driver, with analysts projecting about $53.5 billion in sales during the quarter.
Also, Apple enters earnings with impressive momentum. The company has beaten earnings expectations for 13 consecutive quarters, while options markets are pricing in a post-earnings move of roughly 3.6% to 4%.
Apple Continues Expanding Beyond the iPhone
Apple has been busy making news lately.
Recently, the company launched a new leasing program for the iPhone using Klarna, with customers able to lease for as little as $17.99 per month. The move might ease the effects of expected higher handset prices later this year.
Developing an in-house AI solution that makes Siri "smart enough" to operate without the friction of accessing Google's cloud-based solution has been delayed, and Apple is getting ready for a reimagined Siri incorporating part of Google's AI initiative.
In the interim, the company recently widened its long-term silicon deal with Broadcom and kept lowering the price of memory, which has been driving up prices on a variety of MacBooks and iPads.
What Does Wall Street Think on Apple Stock?
Despite valuation concerns, most analysts remain constructive on Apple heading into earnings.
Morgan Stanley analyst Eric Woodring recently raised his price target to $364 while maintaining a “Buy” rating, citing healthy demand trends and strong company fundamentals.
Bank of America also reiterated its “Buy” rating with a $380 target, expecting continued strength in Services revenue and operating margins.
Not everyone is convinced, however. Barclays maintained a “Sell” rating and a $253 price target, warning that higher component costs and potential iPhone price increases could eventually weigh on unit demand. Baird lifted its target to $330 but cautioned that Apple shares appear expensive following their recent rally.
Overall, a consensus among 42 analysts rate Apple as a “Moderate Buy,” and the stock has already surpassed the average analyst price target of $322.32. It is climbing toward its street high target of $400, indicating 20.2% further upside over the next 12 months.
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www.barchart.com On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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