Apple (AAPL) Q2 2026 earnings summary

Executive summary

• Revenue reached $111.2 billion, up 17% year-over-year, setting a March quarter record with double-digit growth across all geographic segments.

• Net income was $29.6 billion and diluted EPS was $2.01, both up 22% year-over-year and setting March quarter records.

• Growth was driven by strong iPhone and Services sales, with iPhone revenue hitting a March quarter record and Services revenue reaching an all-time high.

• CEO transition announced: Tim Cook to become Executive Chairman on September 1st, with John Ternus to assume CEO role.

• New product launches included iPhone 17e, M4-powered iPad Air, MacBook Neo, MacBook Pro, MacBook Air, and AirPods Max 2.

Financial highlights

• Total net sales for the quarter were $111.2 billion, up from $95.4 billion year-over-year.

• Net income for the quarter was $29.6 billion, up from $24.8 billion year-over-year.

• Gross margin was $54.8 billion (49.3%), up from $44.9 billion (47.1%) year-over-year; Services gross margin was 76.7%.

• Operating income reached $35.9 billion, up 21% year-over-year.

• Operating cash flow exceeded $28 billion, setting a new March quarter record.

Outlook and guidance

• June quarter revenue expected to grow 14%-17% year-over-year, factoring in ongoing supply constraints and rising component costs.

• Gross margin guidance for June quarter is 47.5%-48.5%; operating expenses expected between $18.8 billion and $19.1 billion.

• Services revenue growth rate expected to be similar to March quarter after adjusting for FX tailwinds.

• Board declared a cash dividend of $0.27 per share, a 4% increase, and authorized an additional $100 billion share repurchase program.

• The company plans to increase its dividend annually, subject to board approval.