Apple dropped its Q2 2026 earnings on April 30th, and it wasn’t close. The company posted $111.2 billion in revenue — up 17% year over year and a new March quarter record, blowing past Wall Street’s forecast of around $109.7 billion. EPS came in at $2.01, up 22% year over year, against an expectation of $1.95.
Tim Cook called it Apple’s best March quarter ever, and the data backs that up.
The iPhone is still the engine
iPhone revenue hit $56.99 billion, up from $46.84 billion in Q2 2025, setting a new March quarter record.
The iPhone 17 lineup is driving that, with Cook describing it as the most popular lineup in Apple’s history. There were some supply constraints due to memory shortages, but the team still surpassed guidance. The iPhone 17e launch mid-quarter also added fuel.
Services Keep Growing
Services reached a new all-time high and now makes up roughly 28% of Apple’s total quarterly business. Revenue in the segment was $30.98 billion, up about 16% from $26.65 billion a year ago. That’s ahead of the $30.39 billion analysts expected.
Why does this matter?
Services carry much better margins than hardware. Apple’s gross margin hit 49.3% this quarter, up from 48.2% the previous period, and Services growth is a big reason for that drift upward.
The rest of the hardware held up too
Mac revenue came in at $8.4 billion (up from $7.95B), iPad at $6.9 billion (up from $5.56B last year), and Wearables at $7.9 billion (up from $7.5B). Nothing blew the doors off, but every category beat estimates. The MacBook Neo launch and M4 iPad Air were called out specifically by Cook.
What’s next
For Q3, Apple guided revenue growth of 14–17% year over year — well above the 9.5% analysts had penciled in. That’s a big gap and suggests the company has real momentum heading into summer.
One thing to watch: Cook flagged that the impact of memory costs will grow in coming quarters and that Apple will look at a range of options to manage it. That’s a potential headwind worth keeping an eye on.
On the capital return front, Apple’s board approved a new $100 billion buyback program and raised the quarterly dividend to $0.27 per share, up from $0.26.