Apple Inc. (NASDAQ: AAPL) shares closed at $245.78 on Monday, February 23, 2026, down 1.1% from the previous session's $248.50 finish, extending a modest pullback that has seen the stock trade sideways to lower in early 2026. The decline came amid broader tech sector caution, lingering uncertainty around smartphone demand cycles, and anticipation for the company's next major product cycle, including the rumored iPhone 17 series and potential foldable device.

Apple Logo on a Glass Window

Apple's market capitalization stood at approximately $3.72 trillion at Monday's close, maintaining its position as one of the world's most valuable companies. The stock has risen roughly 3.8% year-to-date in 2026 but remains about 8-10% below its all-time high of $268.54 (split-adjusted) reached in December 2025. Trading volume reached approximately 48.2 million shares, near average for the blue-chip name.

The stock's recent softness reflects a mix of factors. Investors continue to digest Apple's fiscal first-quarter 2026 earnings (reported January 30, 2026), which showed revenue of $124.3 billion (up 4% year-over-year) and adjusted EPS of $2.40 (beating estimates of $2.35). iPhone revenue grew 3% to $71.8 billion despite a challenging comparison and softer demand in China, while Services revenue accelerated 13% to $26.1 billion, driven by App Store growth, Apple Music, iCloud, and Apple TV+. The Services segment now accounts for nearly 21% of total revenue and carries significantly higher gross margins (around 71%) than hardware.

Guidance for the March quarter called for revenue between $88 billion and $92 billion, implying mid-single-digit growth and continued Services momentum. CEO Tim Cook highlighted progress in Apple Intelligence features, with iOS 18.2 and 18.3 updates rolling out generative AI tools to more users globally. Cook reiterated confidence in the long-term AI opportunity, noting that on-device processing and privacy-focused models differentiate Apple from cloud-heavy competitors.

Analyst sentiment remains predominantly bullish. The consensus rating is Moderate Buy, with an average 12-month price target around $268-272 (implying 9-11% upside from current levels). Recent updates include Morgan Stanley maintaining Overweight at $280, citing AI monetization potential and iPhone upgrade cycle strength in late 2026, while Wedbush kept Outperform at $300, emphasizing Services and potential foldable iPhone impact. A few firms, including GLJ Research, maintain Sell ratings with sub-$200 targets, arguing valuation remains stretched at a forward P/E of 32-34x consensus 2026 EPS estimates of $7.20-$7.40.

Key upcoming catalysts include the March 4, 2026, "Special Experience" event in New York, London, and Shanghai. While Apple has not confirmed the agenda, leaks and analyst notes point to the iPhone 17e (successor to the iPhone 16e), refreshed MacBook models with M5 chips, and possibly early details on the long-rumored foldable iPhone (potentially launching late 2026 or early 2027). The event's in-person-only format has fueled speculation about hands-on AI demos or new Siri capabilities.

Rumors around the iPhone 18 series (expected fall 2026) suggest evolutionary upgrades: a 2nm A20 Pro chip for Pro models, 12GB RAM standard on Pro variants, larger batteries (especially on the Pro Max), variable aperture main cameras, and Apple's in-house C2 modem for improved connectivity. A book-style foldable device remains the most-watched wildcard, with mass production of components reportedly starting mid-2026.

Services growth continues to anchor the bull case. Apple Music surpassed 100 million subscribers, Apple TV+ expanded originals, and Apple Pay transaction volume rose sharply. The installed base exceeds 2.2 billion active devices, providing a massive platform for recurring revenue and AI feature adoption.

Challenges persist. iPhone sales in Greater China have softened amid competition from Huawei and local brands, though recovery signs emerged in late 2025. Regulatory scrutiny continues in the EU (Digital Markets Act) and U.S. (antitrust cases), with potential app store changes or forced sideloading still looming. Supply chain risks and macroeconomic factors, including tariffs implemented February 24, 2026, could raise component costs.

Institutional ownership remains strong, with Vanguard, BlackRock, and Berkshire Hathaway holding significant stakes. Insider sales have occurred routinely, but no major red flags have surfaced.

As February 2026 closes, attention turns to the March event and Q2 earnings (late April/early May). A strong product showcase or upbeat Services commentary could reignite momentum, while any signs of slowing iPhone growth or delayed AI features might pressure the multiple.

For now, Apple stock balances stability with high expectations. Its combination of hardware ecosystem strength, Services tailwinds, and AI positioning keeps it a core holding for many portfolios, even as valuation debates and competitive pressures linger.