Apple Q2 2026 Earnings Call Transcript

Apple recently announced some big changes in its executive team, with Timothy D. Cook transitioning to the role of executive chairman and John Ternus stepping in as the new CEO. Both Cook and Ternus expressed confidence in the company’s strategic direction and future plans.

The tech giant also reported strong financial results, with total revenue hitting $111.2 billion, a 17% increase from the previous year. iPhone revenue was a standout at $57 billion, up 22% and setting a new record. The iPhone 17 family has been a hit with customers, becoming the most popular lineup in Apple’s history.

Services revenue also had a banner quarter, reaching $31 billion, an all-time high. The company saw double-digit growth in both developed and emerging markets, with records across all service categories. Additionally, every region saw double-digit revenue growth, with Greater China revenue up 28% and significant growth in India.

Despite some supply constraints, Mac revenue was up 6% to $8.4 billion, driven by the demand for products like the MacBook Neo. iPad revenue also saw an 8% increase, with over half of buyers being new customers, particularly in emerging markets.

Wearables, home, and accessories revenue reached $7.9 billion, with over half of Apple Watch buyers being new to the product. The company’s gross margin was 49.3%, exceeding guidance, while operating expenses rose slightly above expectations.

Apple also announced a new $100 billion buyback program and a 4% dividend increase. They will no longer target net cash neutrality, allowing more flexibility in capital allocation. Looking ahead, Apple expects revenue to grow 14%-17% in the next quarter.

While the company is facing some challenges with supply constraints and rising operating expenses, they remain optimistic about the future. With a focus on innovation, customer satisfaction, and sustainability, Apple continues to be a leader in the tech industry.