Apple (AAPL) Q2 2026 earnings report

Apple issued a better-than-expected revenue forecast for the current period after beating on sales and earnings in the fiscal second quarter. The stock rose about 5% in extended trading.

Sales for iPhones missed estimates for the second time in three quarters, the only significant number that came up short of expectations in Thursday’s report.

Here’s how the company did compared to analyst estimates, according to LSEG consensus.

• EPS: $2.01 vs. $1.95
• Revenue: $111.18 billion vs. $109.66 billion

Wall Street is also looking at these key areas: 

• iPhone revenue: $56.99 billion vs $57.21 billion expected
• Mac revenue: $8.4 billion vs. $8.02 billion expected
• iPad revenue: $6.91 billion vs. $6.66 billion expected
• Wearables, Home and Accessories revenue: $7.9 billion vs. $7.7 billion expected
• Services revenue: $30.98 billion vs. $30.39 billion expected
• Gross margin: 49.3% vs. 48.4% expected

Revenue climbed 17% from $95.4 billion a year earlier, Apple said. The results mark the first time the company is facing Wall Street since the announcement last week that Tim Cook will be stepping down as CEO after 15 years on the job.

The company said on the earnings call that revenue in the June quarter will increase between 14% and 17% from a year earlier. Analysts were expecting growth of 9.5% to $103 billion, according to LSEG.

Apple said its board authorized an additional $100 billion in stock repurchases and declared a cash dividend of 27 cents per share, up 4%.

Sales of iPhones rose 22% in the quarter from a year earlier. Like other consumer electronics companies and device makers, Apple faces supply chain constraints, largely due to the global memory shortage that’s being driven by soaring artificial intelligence demand. Meta and Microsoft said Wednesday that higher memory prices contributed to their increased capital expenditures forecasts for the year.

Cook said on the earnings call that the iPhone 17 is now the “most popular lineup in our history” and noted that overall revenue beat guidance “despite supply constraints.” CFO Kevan Parekh said the company faced supply constraints on iPhones and Macs.

In March, Apple announced a number of new products, including its iPhone 17e, a refreshed iPad Air laptop with an M4 chip in 11-inch and 13-inch sizes. The biggest surprise was the MacBook Neo, a low-cost laptop priced at $599 and aimed at students and budget-conscious consumers.

While device sales are always key to Apple’s results, top of mind for Wall Street is what to expect from incoming CEO John Ternus. Apple announced on April 20, that Ternus is succeeding Cook, who will become executive chairman on Sept. 1.

Ternus, a longtime Apple exec who’s been running hardware, joined the call and was introduced by Cook.

“We have the right leader ready to step into the role,” Cook said in his opening remarks, adding that Apple has the team to realize the “promise of this company.”

Ternus thanked Cook and Apple’s shareholders and said, the company has an “incredible roadmap…