Apple’s App Store revenue rose 0.6% year-over-year to $3.40 billion despite a 4% drop in global downloads.
Bank of America maintained its $380 price target for Apple, citing strong App Store revenue driven by AI app subscriptions. The firm’s analysis showed $3.40 billion in revenue for the first 35 days of fiscal Q4 2026, up 0.6% from $3.38 billion a year earlier.
Global App Store downloads fell 4% to 3.34 billion over the same period, but per-user revenue growth offset the decline. AI apps like ChatGPT, Claude, and Gemini contributed to the revenue increase, with Apple collecting commissions on subscriptions.
Apple’s stock closed at $309.38 on August 5, leaving the $380 target about 23% higher. The valuation reflects a 37x multiple on the firm’s 2027 EPS estimate of $10.32.