11:56 AM EDT, 10/22/2025 (MT Newswires) -- Apple ( AAPL ) is expected to surpass Wall Street expectations when it reports fiscal Q4 results on the back of stronger-than-anticipated iPhone 17 demand and continued strength in its Services business, Morgan Stanley said in a report Wednesday.

The investment bank raised its iPhone shipment forecast for Q4 by 2 million units, now projecting 56.9 million total shipments. Upside is also forecast for the Services segment, with the Q4 revenue growth estimate raised to 13.6% year-over-year.

Gross margins are projected at 46.6% for Q4 and 47% for Q1, as a favorable product mix is seen offsetting possible rises in "memory input costs," the report said, adding that key future catalysts include the approval of Apple Intelligence in China and the expected 2026 launches of advanced Siri and foldable devices.

Morgan Stanley reiterated an overweight rating on the stock with a $298 price target.

The iPhone maker is expected to release its fiscal Q4 results after the close on Oct. 30.

Shares of Apple ( AAPL ) were down 1.4% in recent Wednesday trading.

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