Key Highlights
- Fiscal Q2 revenue reached $111.18 billion, marking a 17% year-over-year increase and surpassing the $109.66 billion analyst consensus
- Earnings per share of $2.01 exceeded the $1.95 forecast; iPhone sales of $56.99 billion fell marginally short of the $57.21 billion projection
- June quarter outlook projects 14–17% revenue expansion, significantly outpacing Wall Street’s 9.5% growth estimate
- Board approved a $100 billion share repurchase program and increased the quarterly dividend to 27 cents per share
- First quarterly results released following the announcement of Tim Cook’s transition to executive chairman, with John Ternus assuming CEO responsibilities September 1
Apple delivered fiscal Q2 2026 revenue totaling $111.18 billion, representing a 17% jump from the prior year’s $95.4 billion and exceeding Wall Street’s $109.66 billion projection. Shares rallied approximately 3% during after-hours trading.
Earnings per share registered at $2.01, comfortably above the $1.95 analyst consensus. The tech giant achieved solid beats across nearly all business segments — with one notable exception.
iPhone revenue totaled $56.99 billion, falling marginally below the anticipated $57.21 billion. This marks the second quarterly shortfall in three reporting periods for Apple’s flagship product category. Despite this minor miss, iPhone sales demonstrated impressive 21.7% year-over-year expansion, maintaining the streak of exceeding 20% growth for consecutive quarters.
The iPhone underperformance was effectively offset by robust results in other divisions. Mac revenue climbed to $8.4 billion, surpassing the $8.02 billion estimate. iPad generated $6.91 billion, beating the $6.66 billion projection. Services revenue achieved $30.98 billion, exceeding the $30.39 billion consensus.
Gross margin registered 49.3%, above the estimated 48.4% and showing improvement from the previous quarter’s 48.2%.
Apple’s board additionally authorized a substantial $100 billion share repurchase initiative and boosted its quarterly dividend to 27 cents per share, reflecting a 4% increase.
Forward Outlook Significantly Exceeds Projections
The most significant catalyst for the stock’s rally may have been the company’s forward-looking guidance. Apple indicated expectations for June quarter revenue growth ranging between 14% and 17% year-over-year. This substantially exceeded Wall Street’s conservative 9.5% growth forecast, which anticipated approximately $103 billion in revenue. The considerable differential between company guidance and analyst projections fueled the after-hours stock surge.
CEO Tim Cook acknowledged that quarterly performance was achieved despite persistent supply chain challenges, particularly a global memory chip shortage driven by escalating AI demand. He characterized the memory cost impact as “minimal” during December, moderately higher in March, and anticipated “significantly higher” costs in the ongoing quarter.
During the earnings call, Cook indicated 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 Succession Takes Center Stage
This quarterly report represented the first since Apple disclosed on April 20 that Cook would transition from CEO to executive chairman effective September 1. John Ternus, who has overseen Apple’s hardware engineering division for years, will assume the chief executive position.
Ternus participated in the earnings call and was formally introduced by Cook. He referenced an “incredible roadmap ahead” for the company but refrained from providing specific details. Cook conveyed strong confidence in the leadership transition, characterizing Ternus as the “right leader” for Apple’s future.
Wall Street analysts had raised concerns following the CEO succession announcement, particularly regarding Apple’s artificial intelligence strategy. The company has forged a partnership with Google to incorporate Gemini technology into Siri — an initiative Cook described as progressing “well” during the call.
Services Division and China Performance Remain Robust
Services revenue expanded 16.3% year-over-year to $30.98 billion, establishing another record high for the segment. Apple’s global installed device base has now surpassed 2.5 billion active units.
Greater China revenue surged 28% to $20.5 billion, up substantially from the prior year’s $16 billion.
Research and development expenditure jumped 33% during the quarter to $11.42 billion, with both Cook and CFO Kevan Parekh emphasizing artificial intelligence as a critical investment focus moving forward.
Cook characterized the iPhone 17 lineup as the “most popular in Apple’s history,” and according to Counterpoint Research data, Apple captured the leading position in global smartphone shipment market share during Q1 for the first time in company history.
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