Apple Inc. delivered a strong financial performance in early 2026, beating Wall Street forecasts as demand for iPhones and digital services pushed revenue and profit higher than expected.
The company reported $111.2 billion in revenue for its fiscal second quarter, marking a 17% increase from the same period last year. Net income reached $29.58 billion, while earnings per share climbed to $2.01—both ahead of analyst projections.
A major driver came from Apple’s fast-growing Services division. Revenue in that segment rose 16.3% to $30.98 billion, surpassing expectations. The unit, which includes platforms like the App Store, Apple Music, iCloud, and Apple Pay, continues to deliver steady, high-margin growth.
iPhone sales also played a critical role. Revenue from the product line jumped 22% to $57.99 billion, setting a new March quarter record. The surge came despite ongoing supply constraints tied to chip shortages and rising memory costs.
Tim Cook acknowledged those pressures but pointed to strong consumer demand as the overriding trend. “Today Apple is proud to report our best March quarter ever, with revenue of $111.2 billion and double-digit growth across every geographic segment,” Cook said in prepared remarks. “iPhone achieved a March quarter revenue record, fueled by such extraordinary demand for the iPhone 17 lineup. During the quarter, Services achieved yet another all-time record, and we were excited to introduce remarkable new products to our strongest lineup ever. That included the addition of the iPhone 17e and the M4-powered iPad Air, along with the launch of MacBook Neo, which is captivating customers all around the world.”
Growth extended across global markets. Sales in Greater China climbed 28% to $20.5 billion, while revenue in the Americas rose nearly 12% to $45.1 billion. Every business segment reported gains.
The results arrive during a period of leadership transition. Cook, who has led Apple for 15 years, will step down as CEO on September 1, 2026, moving into the role of executive chairman. John Ternus, currently senior vice president of hardware engineering, is set to take over as chief executive.
Looking ahead, Apple expects continued cost pressure from rising component prices, especially memory. Even so, demand trends suggest the company enters the next quarter with strong momentum.
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