Apple is scheduled to report its fiscal first-quarter earnings after the market closes on Thursday, with investors closely monitoring whether strong holiday demand for iPhones can offset rising costs and uncertainty around artificial intelligence investments. The company’s fiscal first quarter, which concludes in December, is traditionally its most important period of the year due to seasonal consumer spending.
According to consensus estimates compiled by LSEG, analysts expect Apple to report earnings per share of $2.67 on revenue of $138.48 billion. The company has previously guided for overall revenue growth of 10% to 12% for the quarter, alongside similar double-digit growth in iPhone sales. That outlook implies Apple anticipated revenue in the range of approximately $136.7 billion to $139.2 billion during the first full quarter of iPhone 17 availability.
Those expectations have fueled optimism among analysts that Apple could exceed Wall Street forecasts. Despite that confidence, the company’s shares have declined nearly 11% since reaching a recent high in early December, reflecting broader investor caution around valuation, margins, and long-term growth drivers.
During the earnings call, management is expected to face questions about operating expenses and the impact of higher component costs, particularly for memory and storage. Prices for those components have climbed sharply amid supply constraints driven by increased demand tied to artificial intelligence applications. Apple’s product lineup, including the iPhone, Mac, and iPad, relies heavily on memory and storage, raising concerns about potential pressure on gross margins during what the company has described as a significant growth cycle.
In previous remarks, finance chief Kevan Parekh acknowledged some movement in memory pricing but characterized it as limited. However, several analysts believe the financial impact may be understated in forward estimates, especially as the year progresses.
Attention is also expected to focus on Apple’s artificial intelligence strategy. The company recently disclosed that it has selected Google’s Gemini technology to support parts of its Apple Intelligence platform, replacing some internally developed models. Chief executive Tim Cook may also provide updates on a forthcoming Siri upgrade that is expected to deliver more personalized features powered by AI.
Even so, analysts remain cautious about near-term monetization of AI initiatives. Some have warned that unclear consumer use cases, combined with rising memory costs, could make it more difficult to justify expanded edge AI applications over the next two years. As Apple prepares to report its results, investors will be watching closely for signals on how the company plans to balance growth, innovation, and cost pressures in the months ahead.
