AAPL 2026 Q2

Total revenue grew 17% YoY to $111.2B, beating the high end of guidance despite iPhone and Mac supply constraints; management said underlying growth would have been even higher after adjusting for FX and constraints.

“we would have had a higher growth rate for total company revenue for the quarter”— Kevan Parekh, CFO

Services revenue hit an all-time high of $31B, up 16% YoY, with records across most Services categories and in both developed and emerging markets.

“Services reached an all-time revenue record, growing 16% from a year ago”— Timothy D. Cook, CEO (outgoing); Executive Chairman-designate

Greater China set a quarterly revenue record with 28% growth in the March quarter, following 33% growth for the first half, driven primarily by iPhone.

“In March, revenue was up 28% a quarterly revenue record for us.”— Timothy D. Cook, CEO (outgoing); Executive Chairman-designate

Management flagged a difficult year-over-year comparison for iPad in the June quarter due to the prior-year launch of the A16-powered iPad, signaling a likely growth headwind ahead.

“On iPad, keep in mind we face a difficult compare driven by the launch of the A16-powered iPad in the prior year.”— Kevan Parekh, CFO

Mac demand, especially for Mac mini and Mac Studio driven by AI/agentic use cases, came in higher than predicted, causing supply constraints expected to persist for several months.

“the customer recognition of that is happening faster than what we had predicted, and so we saw higher-than-expected demand”— Timothy D. Cook, CEO (outgoing); Executive Chairman-designate

Demand for MacBook Neo has been far stronger than even Apple's bullish internal expectations, resulting in ongoing supply constraints into the June quarter.

“We were very bullish on the product before announcing it, but we undercalled the level of enthusiasm.”— Timothy D. Cook, CEO (outgoing); Executive Chairman-designate

The iPhone 17 family became Apple's most popular lineup ever through March and the company gained market share per IDC, marking a step up from prior launch cycles.

“the iPhone 17 family is now the most popular lineup in our history when looking at the launch through March”— Timothy D. Cook, CEO (outgoing); Executive Chairman-designate

Despite strong long-run performance in India, Apple still holds only modest market share with over half of customers new to each product category, framed as a large remaining growth opportunity.

“despite doing extremely well there for quite some time, we still have a modest share, which speaks to the opportunity we have”— Timothy D. Cook, CEO (outgoing); Executive Chairman-designate

MacBook Neo adoption is exceeding expectations, driving record new-to-Mac customers and new enterprise/education wins such as Kansas City Public Schools moving entirely to Apple devices.

“Kansas City Public Schools, for example, is switching their high school students from Windows laptops and Chromebooks to MacBook Neo”— Kevan Parekh, CFO

Apple is expanding advertising inventory as a new Services growth lever, adding App Store search ads and launching Apple Maps ads in the US and Canada this summer.

“this summer, in the US and Canada, Apple Maps will feature ads during key search and discovery moments”— Kevan Parekh, CFO

Apple launched Apple Business, a new all-in-one enterprise platform combining hardware, software, and services, expanding its enterprise offering beyond prior device-only deployments.

“we launched Apple Business, a new all-in-one platform that combines our hardware, software, and enterprise services”— Kevan Parekh, CFO

Company gross margin rose to 49.3%, above the high end of guidance and up 110 basis points sequentially, driven by favorable mix and lower tariff costs partly offset by higher memory costs.

“Company gross margin was 49.3%, above the high end of our guidance range, and up 110 basis points sequentially.”— Kevan Parekh, CFO

Guidance calls for June gross margin of 47.5%-48.5%, down from March's 49.3%, reflecting significantly higher expected memory costs partially offset by carry-in inventory benefits.

“we expect significantly higher memory costs”— Timothy D. Cook, CEO (outgoing); Executive Chairman-designate

Products gross margin fell 200 basis points sequentially to 38.7%, driven by seasonal loss of leverage and rising memory costs, a reversal from prior margin stability.

“product gross margin decreased by 200 basis points sequentially, driven by seasonal loss of leverage and higher memory costs”— Kevan Parekh, CFO

Management now expects memory costs to have an increasing negative impact on the business beyond the June quarter, a worsening trend versus the more limited impact seen in December.

“beyond the June quarter, we believe memory costs will drive an increasing impact on our business”— Timothy D. Cook, CEO (outgoing); Executive Chairman-designate

Tariff-related costs declined sequentially due to lower volumes and a full-quarter benefit from reduced IEEPA and Section 122 tariff rates, easing a prior cost headwind.

Per Timothy D. Cook, CEO (outgoing); Executive Chairman-designate

Operating expenses of $18.9B, up 24% YoY, came in slightly above the high end of guidance due to a one-time SG&A expense, an unplanned overshoot versus expectations.

“This was slightly above the high end of our guidance range due to a one-time expense in SG&A.”— Kevan Parekh, CFO

R&D spending is accelerating faster than overall company growth as Apple increases investment in AI and future products, a step-up in investment intensity versus prior periods.

“R&D is accelerating much higher than the company overall”— Timothy D. Cook, CEO (outgoing); Executive Chairman-designate

Apple gained market share in both iPhone and Mac during the quarter according to IDC, indicating an improved competitive position versus rivals.

“according to IDC, we gained market share during the quarter”— Timothy D. Cook, CEO (outgoing); Executive Chairman-designate

A full-quarter reduction in IEEPA tariff rates and the global tariff rate under Section 122 took effect, marking an easing of the tariff regime affecting Apple's cost structure versus the prior quarter.

“there was the full-quarter benefit from a reduction in the IPEA tariff rates as well as the reduced global tariff rate under Section 122”— Timothy D. Cook, CEO (outgoing); Executive Chairman-designate

Apple's Board authorized an additional $100 billion for share repurchases, expanding capital return capacity beyond the prior authorization.

“our Board has authorized an additional $100 billion for share repurchases”— Kevan Parekh, CFO

Apple is dropping net cash neutral as a formal balance-sheet target and will instead evaluate cash and debt independently, a shift from its capital structure framework used since 2018.

“we are no longer providing net cash neutral as a formal target, and we will independently evaluate cash and debt”— Kevan Parekh, CFO

Apple raised its quarterly dividend by 4% to $0.27 per share, continuing its policy of periodic dividend increases.

“we are also raising our dividend by 4% to $0.27 per share of common stock”— Kevan Parekh, CFO

Apple is accelerating US manufacturing investment under its $600B commitment, including bringing Mac mini production to Houston, opening a new advanced manufacturing training center, and adding four new supply chain companies.

“We were pleased to share recently that Mac mini production is coming to America later this year, expanding our factory operations in Houston”— Timothy D. Cook, CEO (outgoing); Executive Chairman-designate

Apple plans to reinvest any tariff refunds received into new, incremental US innovation and advanced manufacturing investments beyond its existing commitments.

“we plan to reinvest any amount we receive back into US innovation and advanced manufacturing”— Timothy D. Cook, CEO (outgoing); Executive Chairman-designate

Management guided that Services growth in the June quarter should be assessed similar to March's reported rate once the favorable FX tailwind is excluded, implying the FX benefit is expected to fade.

“We expect Services revenue to grow at a year-over-year rate similar to what we reported in March”— Kevan Parekh, CFO