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Apple posts record FY 2026 revenue and EPS but valuation concerns keep Sell rating.

Company Fundamentals
03 Nov 2026, 01:30 WIB
Seeking Alpha
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Bearish
Apple posts record FY 2026 revenue and EPS but valuation concerns keep Sell rating.

Apple Inc. reported record revenue and earnings per share for fiscal year 2026, driven mainly by strong sales in its iPhone and Mac divisions. Despite these strong financial results, the company's valuation has risen to 37.5 times trailing earnings, which is higher than its growth rate and raises concerns about future returns. Additional caution comes from slower growth trends, margin improvements partly due to tariffs, and a significant 32% year-over-year increase in research and development expenses. Due to these factors, the analyst maintains a Sell rating on Apple stock, expecting its internal rate of return to remain below 10% and likely underperform the broader market index, the S&P 500.

Apple shares are trading at USD 330.35 on Pluang as of Nov 03, 2026 06:21 WIB, down 4.19% in the last day. The stock's market cap stands at $5.03 trillion with a dividend yield of 0.31%. Despite the recent earnings report showing record revenue, Pluang order activity is slightly tilted towards selling, with 52% Sell and 48% Buy orders.

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