Apple stock has underperformed the S&P 500 in 2025, but recent results show a reaccelerating business driven by a new iPhone cycle and strong services. Double-digit iPhone revenue growth is expected in the crucial holiday quarter.

Fiscal 2025 saw Apple’s revenue rise 6% to $416 billion, with EPS up 23%. Fiscal 2026 guidance indicates further acceleration, with total revenue expected to grow 10-12% supported by iPhone and services growth.

Investing in AI could be a major catalyst for Apple, enhancing device upgrades and deepening engagement across its vast active device base of over 2.35 billion. Disciplined spending sets Apple apart from heavy AI infrastructure investors, making it a strong pick for 2026.

Considerations about Apple stock’s valuation are noted, but strong tailwinds and diverse opportunities, especially in AI, make it worth the current price. Potential device upgrades and new product categories driven by AI are key factors to watch in the coming years.

Read more at Nasdaq: Here’s Why Apple Is My Second Biggest Holding Going Into 2026