Bank of America has set a bullish tone for Apple's upcoming earnings report, citing several positive indicators. Analyst Wamsi Mohan expects revenue and earnings to exceed consensus, forecasting $140 billion in revenue and $2.69 in earnings per share, compared to Street estimates of $138 billion and $2.67. Mohan attributes this optimism to stronger-than-expected iPhone demand and double-digit services growth, despite weaker App Store sales in China.

BofA predicts revenue growth of 13% year over year, surpassing Apple's guidance of 10% to 12%. The bank also identifies two major catalysts for 2026: the launch of a foldable iPhone and an enhanced Siri integrated with Gemini AI. These developments are expected to drive higher upgrade rates and improve margins in the March quarter, with a projected gross margin range of 47.5% to 48.5%.

Additionally, BofA has raised its iPhone unit estimates for the December quarter to 85 million, indicating robust demand for the iPhone 17. Despite recent underperformance due to memory cost concerns, BofA argues that Apple has the levers to offset these pressures. The bank maintains a Buy rating and a $325 price target on the stock, suggesting that investors are currently underweight in Apple, a trend it expects to reverse in 2026.