How Services Could Help Generate $13 in Earnings Per Share for Apple Stock

For years, investors viewed Apple (AAPL) as a hardware powerhouse driven by blockbuster iPhone cycles. But increasingly, Wall Street believes the company’s future earnings engine may come not from devices alone, but from the rapidly expanding ecosystem wrapped around them. That shift is now at the center of a bullish new thesis from Evercore ISI, whose analysts argue Apple’s high-margin Services business could help propel earnings per share to as high as $13 over time.

The firm recently raised its price target on Apple stock to $365 while maintaining an “Outperform” rating, citing the company’s growing ability to monetize its massive installed base of more than 2.5 billion active devices through subscriptions, payments, cloud services, advertising, licensing, and artificial intelligence (AI)-driven offerings. Evercore believes investors remain too focused on near-term iPhone demand fluctuations while underestimating the long-term earnings power embedded within Apple’s Services segment.