Apple (AAPL) shares are likely to be supported by multiple tailwinds in 2026 despite looming supply constraints, BofA Securities said in a Thursday research note.

The brokerage mentioned tailwinds such as iPhone upgrades tracking better than expected, a gross margin uptrend despite commodity headwinds, the upcoming launches of AI-powered Siri and foldable iPhone, as well as a new record installed base of 2.5 billion devices expected to drive double-digit growth in the services segment.

The company's fiscal Q1 beat was driven by strength in iPhone sales and revenue recovery in China, the firm said.

Higher-than-expected gross margins were supported by the services segment, product mix, and favorable leverage despite a $1.4 billion tariff impact during the quarter, BofA said.

BofA said it now expects fiscal 2026 EPS of $8.51 on revenue of $475 billion from $8.26 and $463 billion earlier.

The brokerage said it reiterated its buy rating on the stock and price target of $325 per share.

Price: 256.68, Change: -1.60, Percent Change: -0.62