Apple Reports Strong Q2 Earnings with Record Services Revenue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 01 2026
0mins
Source: NASDAQ.COM
- Significant Revenue Growth: Apple reported a 17% year-over-year increase in total revenue for Q2 2026, exceeding $111 billion, driven by strong demand for the iPhone 17, which generated $57 billion in sales, up 22% from the previous year.
- Record Services Revenue: Services revenue reached an all-time high of $31 billion, growing 16% year-over-year, an acceleration from 14% in the prior quarter, indicating sustained growth potential in this high-margin segment with a gross margin of 76.7%.
- AI-Driven Personalization: Apple plans to introduce a more personalized Siri, leveraging its base of over 2.5 billion active devices, which is expected to enhance user engagement and drive transactions through Apple Pay and the App Store.
- Executive Transition and Challenges: With CEO Tim Cook set to transition to John Ternus on September 1, Apple faces challenges such as supply constraints and rising memory costs, yet the overall strong financial performance suggests the company is broadening its earnings power beyond hardware cycles.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to fall
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 308.820
Low
239.00
Averages
306.89
High
350.00
Current: 308.820
Low
239.00
Averages
306.89
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, Wearables, Home and Accessories. Its services include advertising, AppleCare, cloud services, digital content, and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its wearables include smartwatches, wireless headphones, and spatial computers. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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