Major U.S. companies are seeing tariff refunds roll in, and the payouts are delivering a meaningful boost to reported earnings.

According to the Wall Street Journal, Apple (NASDAQ:AAPL) alone disclosed nearly $2.2 billion in refunds. The iPhone maker said the refunds added 11 cents per share to its most recent quarter’s earnings, about 5% of the quarter’s total.

Other big-name corporates are enjoying refunds, including:

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Apple Faces Analyst Downgrade

  • Apple’s stock is under pressure following a downgrade from Jefferies, which shifted its rating to Underperform from Hold and reduced its price target to $263.66 from $285.56.
  • This new target implies approximately 16% downside from current levels, as reported Monday.

Gene Munster’s Bullish Outlook

  • Despite the downgrade, Gene Munster remains optimistic about Apple’s prospects. He believes the stock is undervalued and anticipates a strong upgrade cycle for high-end iPhones, which could boost average sale prices. Apple has released minimal details about the iPhone18, which is why one expert thinks investors may be overreacting to supply chain concerns.
  • While Apple and other major companies are benefiting from tariff refunds, a broader analysis suggests that earnings growth for the S&P 500 may not be as robust as it appears, highlighting the importance of scrutinizing individual company results.

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