Apple was expected to continue to capitalize on its ongoing sales-related momentum during its second fiscal quarter of 2026, courtesy of the inordinately strong demand profile for the iPhone 17 lineup. And, in accordance with those expectations, Apple appears to have largely delivered via another record quarter.
Apple earnings highlight for the second fiscal quarter of 2026
Here are the key highlights from Apple's latest quarterly earnings release:
- Total Sales - $111.18 billion vs. $95.36 billion in Q2 2025, up 16.6% year-over-year (YoY)
- iPhone Sales - $56.994 billion vs. $46.84 billion in Q2 2025, up 21.7% YoY
- Mac Sales - $8.399 billion vs. $7.949 billion in Q2 2025, up 5.7% YoY
- iPad Sales - $6.914 billion vs. $6.402 billion in Q2 2025, up 8% YoY
- Wearables, Home and Accessories - $7.901 billion vs. $7.522 billion in Q2 2025, up 5% YoY
- Services - $30.976 billion vs. $26.645 billion in Q2 2025, up 16.3% YoY
- Gross Margin - $54.781 billion or 49.27 percent vs. expectations of 48.4%
- R&D Expenses - $11.419 billion
- Net Income - $29.578 billion
- Cash and Cash Equivalents - $45.572 billion
For the second fiscal quarter of 2026, Apple earned $111.18 billion in revenue, corresponding to a year-over-year increase of 16.6 percent relative to $95.36 billion that it earned in Q2 2025.
Apple earned $80.208 billion from its products segment and $30.976 billion from its services segment, equating to 16.7 percent year-over-year growth for the former and 16.3 percent for the latter. Do note that the services revenue constitutes a new all-time record!
Commentary
Apple's Q2 2026 total sales managed to beat the consensus estimate of $109.7 billion. Likewise, its quarterly EPS of $2.02 also came ahead of consensus expectations, which were pegged at $1.95.
Apple's iPhone revenue beat expectations, which were pegged at $56.70 billion vs. the $56.994 billion haul that the Cupertino giant reported for the latest three-month period.
Similarly, ahead of today's disclosure, Apple's Mac revenue consensus estimate was pegged at $8.16 billion, while that for iPad revenue and wearables was pegged at $6.71 billion and $7.8 billion, respectively. Also, analysts expected Apple to report $30.4 billion in services revenue.
As such, Apple has beaten expectations on all revenue items, indicating broad-based strength during the quarter. However, do note that region-based revenue segmentation was not as sanguine, with the Cupertino-based tech giant missing consensus expectations for the Americas and Europe.
Apple earnings call
Earnings call highlights:
- Apple concedes that it'll take several months for the supply of Mac Studio and Mac mini devices to catch up with demand, points to agentic AI as a major source of demand for these products.
- Apple says, "If you are going to run AI on the edge, you should probably have a Mac."
- Apple says Mac-related supply constraints are not due to a shortage of memory resources but rather because of the limited availability of advanced nodes at TSMC.
- Apple CFO expects Services revenue for the June quarter to grow at a similar pace to the March quarter.
- Apple CFO believes several Mac models will constitute the "bulk of our supply constraints" in the June quarter.
- Cook says Mac Studio, Mac mini, and the MacBook Neo now collectively make up around 3 percent of Apple's revenue.
- Tim Cook says he expects a "substantial" increase in memory costs in the June quarter.
- Cook: "I can tell you that beyond the June quarter, we believe memory costs will drive an increasing impact on our business, and we'll continue to evaluate this. And as we've said before, we'll look at a range of options." (source).
- Cook admits that Apple underestimated the demand for MacBook Neo.
- Apple will reinvest US tariff refunds into its American Manufacturing Program (AMP).
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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