Tariffs will hurt, but Apple's foresight will keep earnings up
Investment bank Evercore says the impact of tariffs and App Store changes will be revealed in Apple's next earnings call, but expects the company to maintain some growth regardless.
Apple earnings
Ahead of Apple's Q3 earnings report on July 31, 2025, Evercore continues its previous generally positive predictions, and is maintaining its price target of $250. That's despite this being the first full quarter where the impact of Trump's "reciprocal" tariffs will have been felt.
In a note to investors seen by AppleInsider, Evercore expects that the tariffs will not prevent Apple from having either the growth the market expects, or perhaps a little more. Its analysts say that is because of both modest improvement in China, and also how Apple worked before the quarter to mitigate against tariffs.
The company is hoping that Apple will provide a clearer picture of what the impact of its mandated changes in the App Store will do to its revenue. It foresees a rise in Apple's share price if the company is able to say there is no material impact from these changes.
As for the following quarter, Evercore cautions that it expects a ruling on the DOJ case against Google some time in August 2025. If Google is ordered to stop paying Apple its annual $20 billion for being the default search engine on iPhone, it will obviously impact Apple's earnings.
However, Evercore argues that the impact of such a decision may already have been factored in the guidance that Apple could give investors about the September quarter. Apple's guidance is also expected to reflect how it will be launching the iPhone 17 range during this next quarter.
Overall, just as with JP Morgan and also Morgan Stanley, Evercore lists multiple problems for Apple, yet remains confident of the company's surmounting them.
Read on AppleInsider
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