According to Evercore, the iPhone 17 Pro models are expected to drive strong revenues for Apple in its upcoming Q1 2026 earnings report. Analysts project a robust quarter, with Evercore estimating $140.5 billion in revenue and earnings per share of $2.71. This is largely due to increased demand for the higher-end, more expensive iPhone models, boosting the average selling price.

Strong iPhone sales are projected to increase revenues by 17% year-over-year, exceeding the consensus estimate of 11%. Evercore attributes this to the popularity of the iPhone 17 Pro, which will offset a slight dip in Services growth. While the App Store experienced softer data points, primarily from weaker gaming revenue in Asia, overall Services revenue is still expected to rise by 13% for the quarter.

Apple's Q1 results are typically its strongest of the fiscal year, driven by holiday sales. The company has navigated supply chain issues and maintained favorable pricing agreements. Apple's guidance anticipated double-digit iPhone revenue improvements, aligning with Evercore's projections. The strong performance of the iPhone also boosts sales of connected services.

Investors are keen to see if these forecasts align with Apple's actual results. Apple will release its Q1 2026 earnings on January 29, and the figures will provide insight into the company's performance. Evercore currently rates Apple with a price target of $330, with an "Outperform" designation, reflecting positive expectations for the future.