Apple (AAPL) Q2 2026 earnings report

Apple For the second quarter of its fiscal year, the company reported earnings and revenue above analysts’ estimates, driven by growth in its services business. The stock was little changed in extended trading.

iPhone sales missed estimates for the second time in three quarters; This was the only significant figure in Thursday’s report that fell short of expectations.

Here’s how the company is performing compared to analyst estimates, based on the LSEG consensus.

• EPS: $2.01 and $1.95
• Revenues: $109.66 billion versus $111.18

Wall Street is also looking at these key areas:

• iPhone revenue: 56.99 billion dollars, while the expectation was 57.21 billion dollars
• Mac revenue: 8.4 billion dollars, while the expectation was 8.02 billion dollars
• iPad revenue: 6.91 billion dollars, while the expectation was 6.66 billion dollars
• Wearables, Home and Accessories revenue: $7.9 billion against expectations of $7.7 billion
• Service revenue: 30.98 billion dollars, while the expectation was 30.39 billion dollars
• Gross profit margin: 49.3% vs 48.4%

Apple’s revenue up 17% from $95.4 billion a year ago in question. The results mark the company’s first run-in with Wall Street since last week’s announcement that Tim Cook would step down as CEO after 15 years on the job.

Apple announced that its board of directors has authorized an additional $100 billion in stock buybacks and will distribute a cash dividend of 27 cents per share, an increase of 4%.

In March, Apple announced a number of new products, including the iPhone 17e, a refreshed iPad Air laptop with an M4 chip in 11-inch and 13-inch sizes. The biggest surprise was the MacBook Neo, a low-cost laptop priced at $599 aimed at students and budget-conscious consumers.

iPhone sales increased 22% this quarter compared to the previous year. While device sales are always key to Apple’s results, top of Wall Street’s mind is what to expect from new CEO John Ternus. Apple announced on April 20 that Ternus replaced Cook, who will become executive chairman on September 1. Ternus is a longtime Apple executive who manages hardware.

One of the first things Ternus needs to figure out is where Apple is going with AI. Earlier in the quarter, Apple announced that it would partner with Google to use the Gemini AI model to power its Siri product.

Services revenue in the quarter increased nearly 8% from $28.65 billion a year earlier. Apple uses its massive iPhone customer base to sell subscriptions to entertainment services, as well as Apple Pay, iCloud and AppleCare.

Along with growth in services, Apple is achieving higher profit margins. Long stuck in the high 30s, Apple’s gross profit margin has risen steadily in recent years, reaching 49.3% in the latest quarter from 48.2% in the previous period.

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