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

Subhasree Kar

Mon, May 18, 2026 at 3:34 PM EDT 5 min read

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.

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The bullish argument stems from the fact that services revenue carries substantially higher margins than hardware. As recurring revenue streams like iCloud, Apple Music, AppleCare, Apple Pay, and App Store monetization continue to scale, Apple’s profitability could expand even if overall device unit growth moderates. Evercore estimates the company can sustain EPS growth driven by this mix shift toward Services, premium device pricing, and future AI monetization opportunities.

Does this shift make the stock an attractive buy now?

About Apple Stock

Based in California, Apple stands as a forward-looking company and a worldwide leader in hardware, software, and services. Its portfolio spans iconic devices like the iPhone, iPad, Mac, and Apple Watch, alongside widely used platforms such as the App Store, iCloud, Apple Music, and Apple TV+. The company currently boasts a market cap of $4.4 trillion and a Magnificent Seven status.

Shares of Apple have delivered a strong performance over the past year, reflecting renewed investor optimism around the company’s Services expansion, AI monetization opportunities, and resilient ecosystem strength. The stock closed at $300.23 on May 15, with a fresh 52-week high during the session of $303.20.