Key Highlights
- Fiscal Q2 revenue reached $111.18 billion, representing a 17% year-over-year increase and surpassing analyst projections of $109.66 billion
- Earnings per share of $2.01 exceeded consensus estimates of $1.95; iPhone sales totaled $56.99 billion, falling just short of the $57.21 billion forecast
- June quarter guidance projects 14–17% revenue growth, significantly outpacing Wall Street’s 9.5% growth estimate
- The company announced a fresh $100 billion share repurchase program and increased its quarterly dividend to 27 cents per share
- These results mark Apple’s first quarterly report since revealing Tim Cook’s planned transition to John Ternus as CEO on September 1
Apple delivered fiscal Q2 2026 revenue totaling $111.18 billion, a 17% climb from the prior year’s $95.4 billion, comfortably exceeding Wall Street’s $109.66 billion projection. Shares climbed approximately 3% during after-hours trading.
Earnings per share registered at $2.01, surpassing the anticipated $1.95. The company delivered solid performance across nearly all segments — with one notable exception.
iPhone sales reached $56.99 billion, marginally below the expected $57.21 billion. This represents the second time in three quarters that Apple’s flagship product has fallen short of forecasts. However, iPhone revenue still expanded 21.7% year-over-year, marking the second consecutive quarter with growth exceeding 20%.
The iPhone shortfall was offset by robust performance in other divisions. Mac revenue reached $8.4 billion, surpassing the $8.02 billion projection. iPad generated $6.91 billion, exceeding the anticipated $6.66 billion. Services revenue climbed to $30.98 billion, beating the $30.39 billion consensus.
Gross margin registered 49.3%, outpacing the 48.4% estimate and improving from the previous quarter’s 48.2%.
Apple’s board authorized a fresh $100 billion stock repurchase initiative and increased its quarterly dividend to 27 cents per share, representing a 4% boost.
Forward Outlook Significantly Exceeds Projections
The most significant catalyst for the stock’s rise may have been the company’s forward-looking guidance. Apple projects June quarter revenue growth of 14% to 17% year-over-year. Analysts had anticipated growth of merely 9.5%, translating to roughly $103 billion. This substantial difference between company guidance and analyst forecasts drove the after-hours stock surge.
CEO Tim Cook acknowledged that the quarter’s performance occurred despite persistent supply challenges, stemming from a worldwide memory chip shortage linked to soaring AI demand. He characterized the memory cost impact as “minimal” during December, somewhat elevated in March, and anticipates it being “significantly higher” in the ongoing quarter.
During the earnings call, Cook indicated the company is evaluating “a range of options” as memory costs continue their upward trajectory — a challenge shared with competitors including Samsung, which also highlighted deteriorating memory supply dynamics.
CEO Succession Takes Center Stage
These quarterly results represent the first since Apple revealed on April 20 that Cook will transition from CEO to executive chairman on September 1. John Ternus, who has overseen Apple’s hardware engineering division for years, will assume the CEO position.
Ternus participated in the earnings call and was formally introduced by Cook. He mentioned the company possesses an “incredible roadmap ahead” but refrained from providing specific details. Cook conveyed strong confidence in the leadership change, describing Ternus as the “right leader.”
Wall Street analysts had raised questions following the CEO succession announcement, particularly concerning Apple’s AI strategy. The company has forged a partnership with Google to incorporate Gemini into Siri — an initiative Cook characterized as progressing “well” during the call.
Services Division and China Show Continued Strength
Services revenue expanded 16.3% year-over-year to $30.98 billion, establishing another all-time high for the segment. Apple’s global installed base has now surpassed 2.5 billion active devices.
Greater China revenue surged 28% to $20.5 billion, up from $16 billion in the comparable period last year.
Research and development expenditures increased 33% during the quarter to $11.42 billion, with both Cook and CFO Kevan Parekh highlighting AI as a central investment focus moving forward.
Cook stated the iPhone 17 series has become the “most popular in Apple’s history,” and according to Counterpoint Research, Apple captured the leading position in global smartphone shipment market share during Q1 for the first time ever.
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