Apple’s revenue, free cash flow, and FCF margins surged in its latest quarter, driving AAPL stock target prices higher. Trading at $271.83 on Feb. 9, up from $246.70 on Jan. 20, AAPL hit $278.12 on Feb. 6. Strong FCF results led to a rise in FCF and FCF margins, with FCF representing 35.86% of sales in Q1.

The surge in iPhone sales due to unprecedented demand led to Apple’s revenue rising 15.65% YoY to $143.8 billion. FCF skyrocketed 91% to $51.55 billion in Q1, with FCF margins increasing to 35.86% of sales. Analysts have raised revenue forecasts, with a possible market value of $5.34 trillion and an AAPL stock target price of $362.89.

Shorting one-month out-of-the-money puts and buying longer-dated in-the-money calls are attractive plays for investors. Shorting $260 strike price put options and buying $260 strike price call options for July 17, 2026, expiry can provide leveraged returns. This strategy offers higher expected returns compared to just holding AAPL shares, given the company’s strong FCF margins and higher target prices.

Read more at Barchart: Apple’s FCF Margins Surge and Its Target Value Rises