I Think Apple is Getting Re-Rated to $400 So I’m Buying Again and Again

Apple (AAPL) posted its 9th straight EPS beat at $2.02 vs. $1.89 expected, with revenue surging 16% to $109B, bolstering the bull case toward $400.

Apple's 75.6% Services gross margin on $30.74B quarterly revenue, paired with a $100B buyback, keeps shrinking the float and compounding per-share earnings.

Cook flagged memory pricing as a '100-year flood,' and a one-time tariff refund added 11 cents to EPS, making future comparisons harder.

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I keep hitting the buy button on Apple ( NASDAQ:AAPL ) because the math on a re-rating toward $400 keeps getting easier to defend, and every quarter Tim Cook hands me another reason to add. Shares closed at $319.97 on September 4, 2026, up 33.94% over the past year, and I am still adding.

Why I Keep Coming Back to the Same Ticker

My thesis is simple. Apple runs a dual-engine business where a $54 billion hardware quarter now travels with a services annuity that keeps setting records, and management is retiring the share count fast enough to lift per-share earnings even in a flat quarter. That combination is what I keep paying for.

The Q3 FY26 report backs it up. Revenue landed at $109.42B, up 16.36% YoY, EPS came in at $2.02 vs $1.89 consensus, and that was the 9th straight EPS beat. iPhone revenue was $54.25B against $44.58B a year prior, and Services printed $30.74B. Cook called it "our strongest June quarter ever", and this time the superlative fit.

First, the Services engine. A 75.6% Services gross margin on $30.74B of quarterly revenue is a software business hiding inside a hardware wrapper, and paid subscriptions surpassed 1.5 billion. That is recurring income that compounds.

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Second, the capital return program is doing the heavy lifting on per-share math. The board authorized a new $100 billion buyback and a 4% dividend increase in Q2 FY26. Apple has already repurchased $62.094B in the first nine months of FY26, on top of $90.711B in FY25 buybacks. The quarterly dividend sits at $0.27.