Apple Q2 2026 Earnings Report Highlights Services Growth Amid iPhone Shortfall Apple Inc. (AAPL) reported its fiscal second-quarter earnings on Thursday, revealing a 17% year-over-year revenue increase that exceeded Wall Street expectations. The results marked the company’s first earnings report since the announcement that CEO Tim Cook would step down after 15 years at the helm. Despite the strong financial performance, iPhone sales fell short of forecasts, becoming the sole major metric that missed expectations. The company’s services division delivered a standout performance, with revenue surpassing analyst estimates and contributing to a rise in gross margins. Apple’s total revenue reached $111.18 billion, compared to the $109.66 billion consensus. Key segments showed mixed results: iPhone revenue came in at $56.99 billion, slightly below the $57.21 billion expected, while Mac revenue hit $8.4 billion, exceeding the $8.02 billion forecast. iPad sales reached $6.91 billion, outperforming the $6.66 billion estimate, and Wearables, Home, and Accessories revenue totaled $7.9 billion, surpassing the $7.7 billion projection. Services revenue climbed to $30.98 billion, surpassing the $30.39 billion estimate. Apple’s gross margin rose to 49.3%, higher than the 48.4% expected, driven by strong services growth and cost management. The company’s services segment, which includes subscriptions for Apple Music, Apple TV+, and iCloud, saw a 16% year-over-year increase in revenue, reaching $26.65 billion. This growth is attributed to Apple’s ability to leverage its vast iPhone user base to promote recurring revenue streams. The earnings report also highlighted Apple’s strategic moves in response to market challenges.#tim_cook #apple_inc #john_ternus #iphone #apple_services
