Apple Q2 Estimates Boosted by Strong iPhone Sales

Apple reported record revenue of $111.2 billion for its fiscal 2026 second quarter, ending March 28, 2026, a 17 percent increase year over year. The company’s performance exceeded Wall Street expectations, driven by strong iPhone sales and a record-breaking performance in its Services business. Diluted earnings per share rose to $2.01, up 22 percent year over year.

The results mark the first time Apple has faced Wall Street scrutiny since announcing Tim Cook’s planned departure as CEO after 15 years in the role. Despite the leadership transition, Apple delivered a positive outlook for the current period, forecasting revenue growth between 14% and 17% for the June quarter, significantly higher than the 9.5% growth analysts had predicted.

iPhone Demand Fuels Growth, Despite Shortfall

While overall revenue surpassed expectations, iPhone sales of $56.99 billion slightly missed analyst estimates of $57.21 billion. This represents the second time in three quarters that iPhone sales have fallen short of projections. However, the iPhone 17 lineup still achieved a March quarter revenue record, according to Tim Cook, Apple’s CEO.

“Today Apple is proud to report our best March quarter ever, with revenue of $111.2 billion and double-digit growth across every geographic segment,” said Tim Cook, Apple’s CEO.

Apple Newsroom, April 30, 2026

Other product categories also contributed to the strong results. Mac revenue reached $8.4 billion, exceeding expectations of $8.02 billion. IPad revenue came in at $6.91 billion, surpassing the anticipated $6.66 billion. Wearables, Home and Accessories generated $7.9 billion in revenue, slightly above the expected $7.7 billion.

Services Business Reaches All-Time High

Apple’s Services business continued its strong trajectory, achieving a new all-time high with revenue of $30.98 billion, exceeding estimates of $30.39 billion. This segment includes revenue from the App Store, Apple Music, iCloud, and other subscription services. The strong performance of the Services business helped drive Apple’s overall gross margin to 49.3%, surpassing the expected 48.4%.

Kevan Parekh, Apple’s CFO, highlighted the company’s financial strength.

“Our strong business performance during the March quarter generated over $28 billion in operating cash flow and drove new March quarter records for both operating cash flow and EPS,” said Kevan Parekh, Apple’s CFO.

Apple Newsroom, April 30, 2026

Stock Repurchases and Dividend Increase

Apple’s board of directors authorized an additional $100 billion stock repurchase program and increased the cash dividend by 4 percent to $0.27 per share. The dividend will be payable on May 14, 2026, to shareholders of record as of the close of business on May 11, 2026.

The company also reported that its installed base of active devices across all major product categories and geographic segments reached a new all-time high, indicating continued customer loyalty and demand for Apple products. The launch of new products, including the iPhone 17e, the M4-powered iPad Air, and the MacBook Neo, contributed to this growth.

Apple’s strong financial performance comes amid a period of transition for the company, as Tim Cook prepares to step down as CEO. The company did not provide details on a successor during the earnings call. The positive results suggest that Apple is well-positioned to navigate this leadership change and continue its growth trajectory.