Evercore ISI Reiterates Outperform Rating on Apple, $325 Price Target

Evercore ISI analyst Amit Daryanani reiterated an Outperform rating and $325.00 price target on Apple (NASDAQ: AAPL).

“App Store revenues grew +6% y/y in the month of December for the second consecutive month.

Notably, Gaming also declined two months in a row (-4% y/y versus -2% last month) and was either down or flat for seven of the twelve months in CY25.

Gaming remains the largest portion of App Store revenues at 44% of revenues and has been a headwind to overall growth in recent months; all other categories grew in aggregate +15%.

Within Gaming, AAPL’s largest two Asian markets remained the weakest, with China and Japan revs down -13% and -15% y/y, respectively.

Across the other major App Store categories we track – Entertainment grew +3% y/y, Social Networking grew +11% y/y, Music grew +15% y/y and Photo & Video grew +18% y/y.

Worth noting here, growth accelerated m/m across the Social Networking, Music and Photo & Video categories.

Looking at revenues by region, the U.S. grew +3% y/y, while AAPL’s second and third largest regions (China and Japan) declined -5% and -3% y/y, respectively, driven largely by the weaker Gaming revenues.

Net/Net: App Store revenues appear to have stabilized at +6% following a recent deacceleration in year-over-year growth.

Weakness in Gaming, particularly in China and Japan, continues to be a headwind, though overall Gaming compares should begin to improve in Q1:CY26.

We continue to estimate that the App Store represents ~20% of Services revenues and that AAPL will be able to supplement this softer growth with faster growing areas (Apple Pay, iCloud, Licensing, etc.) as it did in Q4:FY25 (which saw a ~4% delta between App Store revenues and reported Services growth).

Maintaining our OP and $325 target.”

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