Apple (AAPL) stock has staged an impressive comeback after a sluggish start to 2025. Over the past six months, shares have surged 37.9%, recently reaching a record high of $288.62 on Dec. 3, and outperforming the S&P 500 Index’s ($SPX) roughly 14% gain. Surprisingly, Apple has also outpaced tech powerhouses like Meta (META), Amazon (AMZN), and Nvidia (NVDA) during the same period.
The upward swing began in late summer and has been driven by a series of favorable developments. One notable win came when Apple received temporary tariff relief on iPhones manufactured outside the U.S. The exemption allows the company to avoid price increases on affected models despite broader import duties, helping Apple protect demand during a crucial upgrade cycle.
Meanwhile, enthusiasm for the iPhone 17 lineup has played a significant role in the rebound. Strong consumer demand has bolstered expectations for the company’s crucial holiday quarter, while continued growth in Apple’s high-margin Services segment adds steady revenue beyond hardware upgrades.
With fresh hardware momentum and expanding Services strength, Apple is well-positioned to deliver solid growth in 2026.
Apple is entering a period of significant growth, supported by strong demand for its core products and a services business that continues to scale. The company delivered record results for the September quarter with sales rising 8% to $102.5 billion. Notably, Apple expects the momentum to continue through the December quarter, projecting year-over-year revenue growth of 10% to 12%.
The growth momentum is expected to sustain into 2026 as well. Apple has refreshed nearly every major product category, creating what may be its most compelling device ecosystem to date. The iPhone 17 lineup could continue to drive a significant device upgrade trend. The next-generation AirPods Pro and an expanded Apple Watch lineup will add to the momentum, while MacBook Pro and iPad Pro models powered by the M5 chip aim to strengthen Apple’s position in high-performance computing.
The iPhone continues to be Apple’s key revenue driver, and its recent performance reflects that strength. In the September quarter, iPhone sales reached a record $49 billion, up 6% year-over-year. Demand from new and existing users helped push the active installed base of iPhones to an all-time high. With management targeting double-digit iPhone revenue growth during the holiday season, the company appears well-positioned for its highest-ever iPhone sales quarter. Further, the upgrade cycle could continue to boost the segment’s sales in 2026 as well.
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