Apple is heading into its first-quarter earnings call with growing optimism from Wall Street. Analysts expect strong iPhone 17 demand and renewed focus on artificial intelligence to dominate the discussion. According to Wedbush, Apple’s performance in early 2026 may exceed current market expectations as investors reassess the company’s growth trajectory.
The company is scheduled to release its Q1 financial results alongside a conference call with analysts. Wedbush forecasts quarterly revenue of approximately $136.7 billion, marking a notable increase from the same period last year. Although this estimate sits slightly below the highest consensus forecast, analysts believe Apple could still outperform expectations.
iPhone 17 Upgrade Cycle Gains Momentum
A key driver behind this optimism is the anticipated success of the iPhone 17 lineup. Wedbush analysts point to a large pool of potential upgraders, noting that more than 300 million iPhones in active use have not been replaced in over four years. As a result, Apple stands well-positioned to benefit from pent-up demand.
In addition, analysts expect Apple to outperform sales estimates for iPhones during the quarter. A recovery in China, despite rising competition, also supports the bullish outlook. Together, these factors suggest iPhone revenue could once again anchor Apple’s quarterly performance.
Services Growth and AI Take Center Stage
Beyond hardware, Apple’s Services segment remains a strong source of growth. Wedbush anticipates that cloud offerings and payment services will help drive mid-teen year-over-year growth in this division. Consequently, services revenue may exceed Wall Street’s current consensus.
Artificial intelligence is also set to play a central role in the earnings call. Analysts expect Apple’s leadership to provide updates on its AI roadmap, including progress on a redesigned Siri experience. Although the rollout of contextual Siri features has taken longer than expected, the delay reflects Apple’s strategy to tightly integrate AI with its hardware ecosystem.
Looking Ahead to 2026
Wedbush believes Apple’s long-term AI plans could unlock significant value that is not yet reflected in the stock price. If fully realized, this AI potential could add meaningful upside in the years ahead. For now, however, investors will focus on whether iPhone 17 demand and AI strategy can deliver another strong quarter to open 2026.
