High Demand, Tight Supply: Why Wall Street Is Trimming Apple

Despite Apple’s impressive fiscal third quarter 2026 earnings report, investment banks and analysts are pulling back on their price targets for the iPhone maker, as they expect AAPL stock to trade lower than before. While demand for Apple products remained strong in the quarter, growth in the company’s Services segment has slowed.

Here is how some top investment firms reacted to Apple’s fiscal Q3 2026 earnings report.

Goldman Sachs

Although investment bank Goldman Sachs had raised its Apple price target from $340 to $370 just days before the company’s earnings report, the investment firm set a new target value of $360.

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In a note to investors shared by AppleInsider, Goldman Sachs analysts said they currently expect Apple stock to trade lower than before, due to Apple’s guidance that supply will not meet demand in the next quarter. While Apple made it clear that the issue doesn’t stem from partner or supplier issues, but rather “incredibly strong demand,” the fact remains that in the eyes of investors, Apple is leaving money on the table.

Goldman Sachs also expects that the growth in Apple’s Services will slow more, pointing to a slowdown in App Store sales.

However, with all of that said, Goldman Sachs believes Apple is well-positioned to overcome its current problems. The firm’s analysts believe the new Apple Upgrade program will help blunt any expected decline in device sales caused by higher prices.

Morgan Stanley

Morgan Stanley also trimmed its AAPL price target a bit, as it slipped from $364 to $360. The investment firm pointed to slowing Services growth and steeper memory costs for its weaker outlook.

While the bank held on to its Overweight rating on Apple, analyst Erik Woodring noted that two of the three pillars that usually support Apple stock are under pressure. The firm identified those factors as the iPhone, Services, and gross margins.

The iPhone continues to be the strongest column of the three, says Morgan Stanley, with Services growth and margins now weaker than previously believed.

While Apple’s Services business grew 12% from the year-ago quarter, generating $30.7 billion during the quarter, that growth rate was less than the 14.6% consensus forecast. The firm expects Services growth to slow to about 9.5% in the September quarter.

As a result, Morgan Stanley has reduced its fiscal 2027 earnings estimate from $10.39 to $10 per share.

JPMorgan

While the investors at JPMorgan weren’t worrying over price increases, they do worry over ongoing supply chain shortages, resulting in a new price target of $340, down from $345.

During the fiscal third quarter, Apple faced several issues, including RAM shortages, price increases, and supply constraints. Investors expect those issues to continue to plague Apple through December, even if Apple can successfully blunt their impact.

JPMorgan tells investors that it believes high demand for popular products like the iPhone 17 and MacBook Neo has helped maintain momentum in the product cycle. As for the future, the upcoming launch of Apple’s new Siri AI will also help spur demand going into the next quarter.

While JPMorgan expects a less-than-ideal short term, its long-term view remains positive. Supply constraints will merely delay sales rather than eliminate them, pushing that deferred revenue into subsequent quarters.