Apple Topples $5 Trillion Mark as Valuation Debate Heats Up

Apple's market capitalization surpassed $5 trillion for the first time on Monday after its shares closed at a record high of $344.70.

The milestone marks a 34% rally over the trailing twelve months, with Apple's core business showing genuine momentum.

Fiscal third-quarter 2026 revenue climbed 16% year-over-year, driven by iPhone sales up 22% and Mac revenue surging 29%. Earnings per share reached $2.02, a 29% increase from the prior-year period, although this figure includes a non-recurring tariff reimbursement of $0.11 per share.

Tim Cook called the quarter Apple's 'most successful June quarter on record,' highlighting double-digit expansion across the iPhone, Mac, and Services segments, as well as growth in every geographic market.

The company's forward price-to-earnings ratio stands at 35.35x, a premium of nearly 30% to its five-year historical average, sparking debate among analysts about whether the stock's valuation has already priced in good news.