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Apple's $14B CapEx in 2026 keeps cash for buybacks, boosting EPS despite slower growth and rising costs.

Analyst Insights
04 Sep 2026
Seeking Alpha
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Bullish
Apple's $14B CapEx in 2026 keeps cash for buybacks, boosting EPS despite slower growth and rising costs.

Apple plans $14 billion in capital expenditures for 2026, significantly less than hyperscalers spending $130–220 billion, allowing more cash for shareholder buybacks. Since 2012, Apple has spent about $840 billion on buybacks, cutting shares by 45%, which supports an expected 18.29% EPS growth in 2026. However, Apple’s high valuation at 36.8 times forward earnings offers limited downside protection amid risks like rising iPhone component costs and slowing App Store revenue growth. The company’s capital allocation strategy favors shareholder returns over heavy infrastructure spending, balancing growth with financial discipline.

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