10-QPeriod: Q2 FY2026

Apple Inc. Quarterly Report for Q2 Ended Mar 28, 2026

Filed May 1, 2026For Securities:AAPL

Summary

Apple Inc. reported robust financial results for the quarter ended March 28, 2026, demonstrating strong top-line growth and improved profitability. Total net sales increased by 17% year-over-year to $111.2 billion, driven by a significant 22% surge in iPhone sales and a healthy 16% increase in Services revenue. This growth was observed across most geographic segments, with Greater China showing particularly strong performance with a 28% increase in net sales. The company also saw a substantial improvement in gross margin, which rose to 49.3% from 47.1% in the prior year period, reflecting a favorable product mix and strong Services performance. Operating income grew by approximately 21% year-over-year, showcasing effective cost management despite increased R&D spending. Diluted earnings per share saw a corresponding increase to $2.01 from $1.65, underscoring the company's ability to translate sales growth into shareholder value. Apple continues its aggressive capital return program, repurchasing $11.0 billion in stock and raising its quarterly dividend, signaling confidence in its ongoing financial strength and future prospects.

Financial Highlights

53 data points
Beta

Revenue

$111.18B

49.3% Gross Margin

Net Income

$29.58B

26.6% Net Margin

EPS (Diluted)

$2.01

Total Assets

$371.08B

Cash & Equivalents

$45.57B

Free Cash Flow

$26.73B

Financial Statements
Beta
Revenue$111.18B
Cost of Revenue$56.40B
Gross Profit$54.78B
R&D Expenses$11.42B
SG&A Expenses$7.48B
Operating Expenses$18.90B
Operating Income$35.88B
Net Income$29.58B
EPS (Basic)$2.02
EPS (Diluted)$2.01
Shares Outstanding (Basic)14.67B
Shares Outstanding (Diluted)14.73B

Key Highlights

  • 1Total net sales surged 17% year-over-year to $111.2 billion for the quarter ended March 28, 2026.
  • 2iPhone sales were a significant growth driver, increasing by 22% to $57.0 billion.
  • 3Services revenue continued its strong trajectory, up 16% to $31.0 billion.
  • 4Gross margin improved to 49.3% from 47.1% in the prior year quarter, driven by product mix and Services.
  • 5Operating income increased by approximately 21% to $35.9 billion.
  • 6Diluted earnings per share rose to $2.01, compared to $1.65 in the prior year quarter.
  • 7The company announced an additional $100 billion share repurchase authorization and increased its quarterly dividend to $0.27 per share.

Frequently Asked Questions

The primary driver of Apple's revenue growth was a significant increase in iPhone sales, which rose by 22% year-over-year, alongside strong and consistent growth in its Services segment, which increased by 16%.

Apple demonstrated improved profitability, with its gross margin increasing to 49.3% from 47.1% in the prior year period. This improvement was attributed to a favorable product mix and strong performance in the Services segment. Operating income also grew substantially by approximately 21%.

Apple continues its robust capital return program. In this quarter, the company repurchased $11.0 billion of its common stock and paid $3.8 billion in dividends. Furthermore, the company announced an additional $100 billion share repurchase authorization and increased its quarterly cash dividend to $0.27 per share, signaling confidence in its financial position and commitment to shareholder returns.

The filing highlights potential headwinds including supply constraints and increasing component costs, particularly for advanced semiconductors. Macroeconomic conditions, tariffs, and geopolitical tensions are also noted as potential risks. Additionally, Apple faces ongoing legal and regulatory scrutiny in various jurisdictions concerning its App Store practices and market competition.