QUICK SUMMARY: Apple reported Q2 fiscal 2026 revenue of $111.2 billion, beating consensus. EPS came in at $2.01 against a $1.95 estimate. iPhone revenue set a Q2 record at $56.99 billion but missed by a narrow margin. Services revenue hit a new all-time high of $30.98 billion. The board authorized a fresh $100 billion buyback and raised the dividend to $0.27. Stock traded roughly 3 percent higher in premarket. This Apple Q2 earnings call was Tim Cook’s last as CEO.
Apple Q2 earnings landed Thursday afternoon, with the company posting fiscal 2026 second-quarter revenue of $111.18 billion against consensus of $109.66 billion, according to CNBC’s report on the release. Apple’s fiscal calendar is offset, so what the company refers to as the “March quarter” in its investor materials covers January through March of calendar 2026. Diluted EPS was $2.01 versus a $1.95 estimate. Total revenue grew 17 percent year-over-year. The company set Q2 records for total revenue, iPhone revenue, and EPS.
iPhone Revenue Set an Apple Q2 Earnings Record but Missed Consensus
iPhone revenue was $56.99 billion, up 22 percent year-over-year, against a consensus estimate of $57.21 billion. The figure was a Q2 record but a narrow miss against the analyst line.
Services revenue reached $30.98 billion, beating the $30.39 billion estimate and setting a new all-time high. The segment grew 16 percent year-over-year.
Mac revenue was $8.4 billion against $8.02 billion expected. iPad revenue was $6.91 billion against $6.66 billion expected. Wearables, Home and Accessories revenue was $7.9 billion against $7.7 billion expected.
Gross margin came in at 49.3 percent, up from 47.1 percent in the year-ago quarter and ahead of the 48.4 percent consensus, according to AppleInsider. Net income was $29.58 billion, up from $24.8 billion a year earlier.
Apple Q2 Earnings Headline: A $100 Billion Buyback
Apple’s board authorized an additional $100 billion for share repurchases. The company raised its quarterly dividend to $0.27 per share, up from $0.26. The dividend is payable May 14 to shareholders of record as of May 11, per MacRumors’ coverage of the release.
The buyback is the headline shareholder-return number. At a market capitalization above $4 trillion, the new authorization is roughly 2.5 percent of outstanding equity.
Cook’s Final Read on the Quarter
This was Tim Cook’s final earnings call as CEO. John Ternus takes over on September 1. Cook attributed the Apple Q2 earnings performance to iPhone demand and Services momentum.
CFO Kevan Parekh told the Financial Times that the iPhone 17 lineup is now Apple’s most popular ever and that the company believes it gained market share during the quarter, per MacRumors’ summary. The installed base of active devices reached a new all-time high across all major product categories and regions.
Apple did not give explicit forward guidance in the release, though the prepared remarks pointed to continued double-digit growth across all geographic segments.
Capital allocation is the part of CEO performance that gets discussed least and matters most over a long horizon. The Outsiders by William Thorndike is one of our informational picks on how a small group of CEOs treated cash flow as the real product. The framework holds up well as a way to evaluate what Ternus does with Apple’s buyback program after he takes over.
Premarket Up Roughly 3 Percent
Apple traded roughly 3 percent higher in premarket trading on Friday. Bloomberg reported the move ahead of the open, in its market wrap.
The reaction reflects the beat across most categories and the size of the new buyback. The narrow iPhone miss against consensus did not dominate the read. Apple Q2 earnings cleared the line on revenue, EPS, and shareholder returns, and the market priced the result accordingly.
For educational purposes only. Not financial advice.
Frequently Asked Questions
Did Apple beat earnings expectations for Q2 2026?
Yes. Apple reported revenue of $111.18 billion against consensus of $109.66 billion, and diluted EPS of $2.01 against a $1.95 estimate. The beat extended across Services, Mac, iPad, and Wearables. iPhone revenue set a Q2 record but came in slightly below the analyst consensus.
How big is Apple’s new buyback program?
Apple’s board authorized an additional $100 billion for share repurchases, on top of the existing program. At Apple’s current market capitalization above $4 trillion, the new authorization represents roughly 2.5 percent of outstanding equity.
Was this Tim Cook’s last earnings call?
Yes. John Ternus, Apple’s senior vice president of hardware engineering, takes over as CEO on September 1, 2026. Cook will remain at the company as executive chairman.
How much did Apple raise the dividend?
Apple raised its quarterly dividend to $0.27 per share from $0.26, a roughly 4 percent increase. The dividend is payable May 14 to shareholders of record as of May 11.
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