Apple Gets a New M&A Chief. How You Should Play AAPL Stock Now.

CEO John Ternus has already had quite an eventful tenure since taking the helm at Apple (AAPL) in September 2026. After overseeing the launch of the first-ever foldable iPhone — the iPhone Duo — reports have emerged that Ternus has taken over as the company's de facto design chief, although no official statement on this matter has been released.

Now, according to Bloomberg, Ternus is going for a management reshuffle. Let's take a closer look.

Steve Smith Will Be Apple's New M&A Chief

Apple corporate development senior director Steve Smith has reportedly been appointed as the new mergers and acquisitions chief of the company. Smith will replace Adrian Perica, who will move to Apple's Services business. Smith will also report to CFO Kevan Parekh.

Smith's tenure at Apple has seen some material moves from the company. Before delving into those, however, it's worth noting that his level of contribution to them is unclear.

Some of Apple's major acquisitions over the years include the purchase of Intel's (INTC) smartphone modem business for $1 billion in 2019, as well the more recent buyouts of artificial intelligence (AI) firms DarwinAI and Q.ai. These may have been solid acquisitions, but they did not excite Wall Street much upon arrival. However, some of Apple's commercial partnerships certainly have generated interest.

In January 2026, Apple announced a partnership with Alphabet (GOOGL) to use Google Gemini models to build its own Apple Foundation Models. A couple of hardware agreements also stand out, including a deal with Broadcom (AVGO) in May 2023 for the company's U.S.-made 5G radio-frequency components and wireless connectivity technology. In 2019, Apple also entered into a six-year patent licensing agreement with Qualcomm (QCOM), which was renewed this year.

Smith's role in helping clinch these deals is subject to speculation, although he was certainly on the team. As for Ternus, this management reshuffle could go one of two ways. For one, the appointment of an internal hand like Smith might help jumpstart Apple to make some noteworthy acquisitions, especially in AI. By not considering an external candidate, however, Apple may have lost out on some genuine outside M&A expertise. Although there was no inkling of the same, Apple burned its hands decades ago by appointing John Sculley from Pepsi (PEP), a move that did not play out well. So, Ternus may have been wary of looking at outside candidates this time.

Whatever the reasoning as to why, Ternus seems to be keeping faith in the people he has been working with for years, and whose style he is well versed in.

Apple's Q3 Bonanza

Apple's third quarter proved exceptional, as the Cupertino, California-based tech leader delivered beats on both revenue and earnings alongside record operating cash flows. Total revenue advanced 16% year-over-year (YOY) to $109.4 billion. iPhone sales rose 22% YOY to $54.3 billion during the period, Mac sales climbed 29% to $10.4 billion, iPad revenue fell 6% to $6.2 billion, and the Wearables, Home and Accessories segment grew 7% to $7.9 billion. The Services segment also contributed $30.7 billion in revenue, up 12% YOY. Although Mac performance was robust, it will be important to monitor results in the current quarter now that recent price increases have taken effect.

Gross margins moved above the 50% threshold, compared with 46.5% in the year-ago period. EPS climbed 29% YOY to $2.02, exceeding the consensus estimate of $1.89 per share and marking the ninth consecutive quarter in which Apple outperformed profit forecasts.

While this consistency is impressive, some market participants remain focused on the company’s AI direction. Apple appears to have made meaningful progress on that front with the latest version of Siri AI.

Cash from operating activities for the nine months ended June 27, 2026 totaled $117 billion, up from $81.8 billion in the comparable prior-year period. The company closed the quarter with $39.5 billion in cash, well above its short-term debt balance of $11 billion.

With a market capitalization of $4.97 trillion and shares up 26% so far this year, AAPL stock currently trades at elevated valuation levels. The forward price-to-earnings (P/E) ratio of 35.3 times, the price-to-sales (P/S) multiple of 10.6 times, and the price-to-cash flow (P/CF) ratio of 40.2 times are all above the respective sector medians.

What Do Analysts Think of AAPL Stock?

Overall, analysts appear hopeful about AAPL stock, giving it a consensus "Moderate Buy" rating. Out of the 40 analysts covering the stock, 20 have a “Strong Buy” rating, three have a “Moderate Buy” rating, 14 have a “Hold” rating, one has a “Moderate Sell” rating, and two have a “Strong Sell” rating.

The mean price target of $331.86 has already been surpassed, making price revision a possibility soon. Meanwhile, the high price target of $400 implies potential upside of 17% from current levels.

On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.