Quick Summary
- Apple delivered fiscal Q2 revenue of $111.18 billion, a 17% year-over-year increase, surpassing analyst projections of $109.66 billion
- Earnings per share reached $2.01, exceeding the consensus estimate of $1.95; iPhone sales of $56.99 billion fell marginally short of the $57.21 billion forecast
- The company’s June quarter revenue guidance projects 14–17% growth, significantly higher than Wall Street’s 9.5% forecast
- Apple announced a fresh $100 billion share repurchase program and increased its quarterly dividend to 27 cents per share
- These results mark Apple’s inaugural earnings release following the April announcement that Tim Cook will transition the CEO position to John Ternus effective September 1
Apple reported fiscal Q2 2026 revenue of $111.18 billion, representing a 17% jump from $95.4 billion in the same period last year and 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 analyst consensus of $1.95. The quarter delivered strong performance across nearly all segments — with one notable exception.
iPhone revenue totaled $56.99 billion, falling slightly beneath the $57.21 billion analyst estimate. This marks the second shortfall in three reporting periods for Apple’s flagship product category. Despite this minor miss, iPhone sales still expanded 21.7% compared to last year, representing the second consecutive quarter of growth exceeding 20%.
The iPhone shortfall was effectively offset by robust performance in other divisions. Mac revenue recorded $8.4 billion compared to estimates of $8.02 billion. iPad generated $6.91 billion, surpassing the anticipated $6.66 billion. Services revenue achieved $30.98 billion, beating the $30.39 billion projection.
Gross margin registered at 49.3%, exceeding the 48.4% estimate and marking an improvement from the previous quarter’s 48.2%.
Apple’s board simultaneously greenlit a new $100 billion stock repurchase authorization and boosted its quarterly dividend to 27 cents per share, representing a 4% uplift.
Forward Outlook Substantially Beats Projections
The most significant catalyst for the stock’s movement may have been the company’s forward-looking guidance. Apple indicated it anticipates June quarter revenue to expand between 14% and 17% year-over-year. Wall Street analysts had forecast growth of merely 9.5%, translating to roughly $103 billion. This substantial difference between company guidance and analyst expectations drove the after-hours rally.
CEO Tim Cook acknowledged that the quarter’s performance materialized despite persistent supply chain challenges, primarily driven by a worldwide memory chip shortage linked to escalating AI demand. He characterized the memory cost impact as “minimal” during December, somewhat elevated in March, and projected it to be “significantly higher” in the ongoing quarter.
Cook indicated during the conference call that the company is evaluating “a range of options” to address rising memory costs — a challenge shared with competitors including Samsung, which similarly highlighted deteriorating memory supply conditions.
CEO Transition Takes Center Stage
This quarterly report represents the first since Apple disclosed on April 20 that Cook will relinquish his CEO responsibilities, assuming the role of executive chairman on September 1. John Ternus, who has overseen Apple’s hardware engineering operations for several years, will assume the top executive position.
Ternus participated in the earnings conference call and was formally introduced by Cook. He indicated the company possesses an “incredible roadmap ahead” but refrained from sharing specific details. Cook voiced strong confidence in the leadership succession, characterizing Ternus as the “right leader.”
Wall Street analysts had raised concerns following the CEO transition announcement, particularly regarding Apple’s AI strategy. The company has formed a partnership with Google to incorporate Gemini technology into Siri — an initiative Cook characterized as progressing “well” during the call.
Services Division and China Market Demonstrate Strength
Services revenue expanded 16.3% year-over-year to $30.98 billion, establishing another record high for the division. Apple’s worldwide installed base now surpasses 2.5 billion active devices.
Greater China revenue climbed 28% to $20.5 billion, up from $16 billion in the comparable year-ago period.
Research and development expenditures increased 33% during the quarter to $11.42 billion, with both Cook and CFO Kevan Parekh highlighting AI as a critical investment focus moving forward.
Cook stated the iPhone 17 lineup represents the “most popular in Apple’s history,” and according to data from Counterpoint Research, Apple captured the leading position in global smartphone shipment market share during Q1 for the first time in company history.
