Apple shares climbed 8% in extended trading Thursday after the company reported fiscal second-quarter results that topped analyst expectations on both revenue and earnings. The stock closed at $198.45, reaching its highest level since January.
Quarterly results beat expectations
Apple generated $96.5 billion in revenue for the quarter ended March 29, compared to the $94.6 billion consensus estimate among analysts tracked by Visible Alpha. Earnings per share reached $1.65, beating the projected $1.59.
iPhone revenue totaled $47.3 billion, showing modest growth despite macroeconomic headwinds in key markets. The company’s flagship product continues to drive overall financial performance despite increasing competition.
Services segment hits record high
The services division delivered its strongest quarter ever, generating $26.8 billion in revenue. This represents 16% year-over-year growth and demonstrates Apple’s successful pivot toward recurring revenue streams.
Services now account for 28% of total company revenue, up from 24% in the same quarter last year. The segment includes App Store commissions, iCloud subscriptions, Apple Music, Apple TV+, warranty programs, and payment services.
| Segment | Q2 2026 Revenue | YoY Change |
|---|---|---|
| iPhone | $47.3B | +3% |
| Services | $26.8B | +16% |
| Wearables | $9.3B | +5% |
| Mac | $7.7B | +2% |
| iPad | $5.6B | -1% |
Regional performance varies by market
Revenue from the Americas increased 7% year-over-year to $38.4 billion. European sales grew 4% to $25.1 billion. The Greater China region remained challenging, with revenue declining 5% to $15.8 billion amid competitive pressures.
CEO Tim Cook noted improvement in China during the final weeks of the quarter. The company expects the market to stabilize in the coming periods as new product initiatives gain traction.
Capital return program expands
Apple’s board authorized an additional $100 billion for share repurchases. This brings the total buyback authorization to $110 billion when combined with remaining funds from previous programs.
The company raised its quarterly dividend 4% to $0.26 per share. Apple has now increased its dividend annually for 13 consecutive years, establishing itself as a reliable income vehicle for conservative portfolios.
Looking ahead to fiscal third quarter
Management provided guidance suggesting revenue growth in the low to mid-single digits for the June quarter. Services growth is expected to remain strong, offsetting seasonal softness in hardware categories.
Analysts project continued momentum into the second half of 2026. The anticipated iPhone 17 cycle, combined with potential tariff resolution, could drive further upside for patient investors.
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