Apple said on Oct. 26, 2026 that it unveiled an all-new iPad mini with an OLED display, a faster chip and water and dust resistance. The product is small next to Apple's total sales: iPad revenue was $6.19B in the third quarter ended June 27, 2026, against $54.25B for iPhone. The bigger questions for investors are the Nov. 2 earnings report and a valuation (the price paid per dollar of profit) that already assumes a lot.
Key facts
- Oct. 26, 2026: Apple announced the redesigned iPad mini. AAPL closed the latest quote at $343.91, down 1.10% that day. Its 52-week range is $243.42 to $351.73.
- Third quarter ended June 27, 2026 (reported July 30): revenue was $109.42B and diluted EPS (earnings per share) was $2.02, against an analyst estimate of $1.89.
- Revenue growth: revenue rose 16.4% from the year-ago quarter, and net income rose 27.1%.
- Next report, Nov. 2, 2026: analysts expect EPS of $1.99 and revenue of $113.39B.
- Valuation (trailing 12 months): price-to-earnings (P/E) is 39.30.
- Oct. 20, 2026: Loop Capital cut its rating on Apple from Buy to Hold.
What happened
According to its Oct. 26 release, Apple gave the iPad mini its biggest update to date. The new model has a larger OLED screen with higher contrast and brightness than the previous generation. It also has a thinner, lighter body, a new Apple chip that the company says supercharges AI with Neural Accel, and water and dust resistance. The company also offers a nano-texture screen option.
The iPad is Apple's smallest major product line by sales. In the third quarter ended June 27, 2026, iPad revenue was $6.19B, lower than the $6.58B a year earlier. A refreshed mini could help that line, but it is unlikely to move Apple's overall results by itself.
The larger drivers show up in the segment data for the same quarter:
- iPhone: $54.25B, up from $44.58B a year earlier.
- Services (App Store, iCloud, subscriptions and similar): $30.74B, up from $27.42B.
- Mac: $10.35B, up from $8.05B.
- Wearables, Home and Accessories: $7.88B, up from $7.40B.
One headline on Oct. 27 cited Counterpoint Research saying initial global sales of the newest iPhone Pro models were higher than the prior series. We treat that as a third-party early read, not a company result. Apple's next report will show whether it holds up.
Why it matters for investors
Margins have climbed. Over the last five reported quarters, gross margin (the share of sales left after the direct cost of making products) rose every quarter:
| Quarter ended | Revenue | Gross margin | Operating margin | Net income | |---|---|---|---|---| | June 28, 2025 | $94.04B | 46.5% | 30.0% | $23.43B | | Sept. 27, 2025 | $102.47B | 47.2% | 31.6% | $27.47B | | Dec. 27, 2025 | $143.76B | 48.2% | 35.4% | $42.10B | | March 28, 2026 | $111.18B | 49.3% | 32.3% | $29.58B | | June 27, 2026 | $109.42B | 50.1% | 32.6% | $29.79B |
The December 2025 quarter is the holiday quarter, which is always the biggest, so its operating margin stands out. Setting that quarter aside, operating margin has held in a narrow band, and gross margin is at the top of the range. Services grew in dollars over the year, but iPhone grew faster.
Cash generation is strong, and buybacks are large. Free cash flow (cash from operations minus capital spending) was $31.91B in the June 2026 quarter. In the prior quarters it was $26.73B, $51.55B, $26.49B and $24.41B, newest to oldest. In the June 2026 quarter Apple spent $25.11B on share buybacks and $4.04B on dividends. Buybacks were $12.29B in the March quarter, so the pace picked up. The dividend yield is only 0.3%, so returns come mostly through buybacks.
The balance sheet is sound. At June 27, 2026 Apple held $62.40B in cash and short-term investments against $84.31B of total debt. FMP reports net debt of $44.76B, which appears to use a narrower cash measure. Its Piotroski score (a 0-9 financial health check) is 9, and its Altman Z score (a bankruptcy-risk gauge, where higher is safer) is 13.52.
The valuation is high. Trailing P/E is 39.30, price-to-sales is 10.75, EV/EBITDA (company value relative to operating earnings) is 29.96, and price to free cash flow is 36.72. Peers on the same data feed look very different, and they are not close substitutes for Apple:
| Company | P/E | Net margin | |---|---|---| | Apple (AAPL) | 39.30 | 27.6% | | Samsung Electronics (SSNLF) | 9.83 | 30.9% | | Xiaomi (XIACF) | 17.16 | 7.5% | | Sony Group (SONY) | -110.75 | -1.7% |
Samsung earns a net margin comparable to Apple's but trades at a far lower P/E. Sony's negative P/E reflects a loss over the trailing 12 months. Investors appear to be paying for continued growth and a premium for Apple's services business and brand.
Analysts are positive but divided on price. Of 112 ratings, 1 is strong buy, 69 are buy, 33 are hold and 9 are sell, for a consensus of "Buy." Analyst price targets average $340.14, with a median of $355.00, a high of $400.00 and a low of $245.00. The share price of $343.91 sits close to the average target. Financial data provider FMP's discounted cash flow model, which estimates value from projected cash flows, gives $138.04 per share. That is one model's output, and it depends heavily on its assumptions.
Stock Expert AI's MoonshotScore for Apple is 88.6, rated Exceptional. Its sector-relative pillars show where the strengths and weaknesses are:
- Quality: 96 (strongest)
- Momentum: 84
- Growth: 67
- Safety: 67
- Valuation: 31 (weakest)
What could go wrong.
- The valuation leaves less room for disappointment. A softer report or guidance could matter more at a P/E of 39.30 than at a lower multiple.
- Among the 30 most recent insider filings, those from the last 90 days show 17 sales and no open-market purchases. Insider selling at large companies is often routine, but insiders have not been buying on the open market. Older filings in the window may be missing.
- iPad revenue fell from a year earlier, and Apple's growth leans on iPhone. A slowdown there would be felt across the company.
- Loop Capital downgraded Apple from Buy to Hold on Oct. 20. The data lists the rating change but gives no reason for it.
What to watch next
- Nov. 2, 2026 earnings. Analysts expect EPS of $1.99 and revenue of $113.39B for the quarter. The EPS estimate is a bit below the $2.02 Apple reported last quarter, so watch the guidance for the holiday quarter, which is typically the largest.
- Gross margin. It reached 50.1% last quarter. Whether it holds will show how much services mix and costs are helping.
- iPhone and Services. Check whether iPhone growth continues and Services keeps its pace.
- iPad commentary. Management's remarks on iPad demand after the iPad mini launch will show whether the product line is stabilizing.
- Buybacks and cash flow. Last quarter's buyback pace was well above the quarter before it. See whether it continues.
- Longer-term estimates. For the period ending Dec. 27, 2027, analysts expect revenue of $163.15B and EPS of $3.27. The range of revenue estimates for that period runs from $148.66B to $174.69B, which shows how much analysts disagree on the outlook.
Frequently asked questions
Q: Will the new iPad mini move Apple's stock?
The iPad is a small share of Apple's revenue. In the third quarter ended June 27, 2026, iPad revenue was $6.19B, compared with $54.25B for iPhone and $30.74B for Services. The Nov. 2 earnings report, iPhone demand and margins cover far more of the business.Q: Is Apple stock expensive right now?
By its own numbers, it is priced at a premium. Trailing P/E is 39.30 and price-to-sales is 10.75. Stock Expert AI's MoonshotScore valuation pillar is 31, its weakest area, while quality scores 96. Samsung trades at a P/E of 9.83 with a similar net margin, though the two companies are different businesses. Whether the premium is justified depends on how long Apple can keep growing, which no one can know in advance.Q: What do analysts expect from Apple's next earnings report?
For the quarter reported on Nov. 2, 2026, analysts expect EPS of $1.99 and revenue of $113.39B. Last quarter Apple reported EPS of $2.02 against an estimate of $1.89, and revenue of $109.42B against an estimate of $109.04B. Analyst price targets range from $245.00 to $400.00, with an average of $340.14.This is educational content, not investment advice. Past performance does not guarantee future results.