Apple Reports Record $111.2 Billion Revenue in Fiscal Q2 2026

Apple Inc. reported revenue of $111.2 billion for its fiscal second quarter of 2026, marking a 17% increase year over year and surpassing analyst estimates of $109.46 billion. iPhone revenue reached $57 billion, up 22% from the previous year, slightly exceeding expectations of $56.66 billion.

The company's diluted earnings per share stood at $2.01, reflecting a 22% rise. Sales in China grew 28% to $20.5 billion during the quarter. The services segment achieved an all-time revenue record of $30.9 billion, compared to $26.6 billion a year earlier.

Apple noted shortages of MacBooks and iPhones in stores, with CEO Tim Cook attributing the earnings beat to demand despite these constraints.

Tim Cook, Apple's CEO, will transition to executive chairman on September 1, after 15 years in the role. John Ternus, a longtime hardware executive, will succeed him as CEO. On the earnings call, Ternus described Cook as one of the greatest business leaders of all time and highlighted CFO Kevan Parekh as a strategic partner.

“One of the hallmarks of Tim’s tenure has been deep thoughtfulness, deliberateness, and discipline when it comes to the company’s financial decision-making. I want you to know that is something Kevan and I intend to continue when I transition into the role in September.”

Parekh, who became CFO in January 2025, provided forward-looking guidance projecting 14% to 17% year-over-year revenue growth for the third quarter, above the previously expected 9%. He reaffirmed the company's capital allocation strategy, focusing on R&D investments, dividends, buybacks, and maintaining a net cash-neutral position.

Apple shares rose more than 4% in morning trading on Friday, closing at $280.14, up 3.2%. Wedbush analysts maintained an outperform rating with a $350 price target, noting the company's navigation of tariff situations and memory pricing headwinds. Cook acknowledged higher costs for key hardware components expected to impact margins.

Both sources highlighted investor interest in Apple's AI strategy, with the upcoming Worldwide Developers Conference in June anticipated to provide updates.

“With iPhone 17 firing on all cylinders, China a clear tailwind, the June guide well ahead of the Street, and Ternus about to take the wheel heading into WWDC, it’s all about the AI strategy.”

Ternus stated that the current period is the most exciting in his 25-year career at Apple for building products and services. Parekh mentioned AI as an important investment area pursued incrementally, citing enterprise examples like a product refresh at risk management firm Marsh.

The company introduced products such as Apple Watch, AirPods, and Apple Vision Pro, along with services including iCloud and Apple Pay.

Wedbush analysts praised Apple's performance, particularly in managing complex challenges in fiscal 2026. They anticipate more details on guidance and the CEO transition in September. The earnings call marked Cook's 89th, coinciding with his 28th anniversary at Apple. Ternus emphasized maintaining focus on product innovation as the company's North Star.