01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 $2.01b 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.
02—Key points
Key Highlights
- Total net sales surged 17% year-over-year to $111.2 billion for the quarter ended March 28, 2026.
- iPhone sales were a significant growth driver, increasing by 22% to $57.0 billion.
- Services revenue continued its strong trajectory, up 16% to $31.0 billion.
- Gross margin improved to 49.3% from 47.1% in the prior year quarter, driven by product mix and Services.
- Operating income increased by approximately 21% to $35.9 billion.
- Diluted earnings per share rose to $2.01, compared to $1.65 in the prior year quarter.
- The company announced an additional $100 billion share repurchase authorization and increased its quarterly dividend to $0.27 per share.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Apple Inc. kept $0.27.
- Revenue$111.18B100.0%
- Cost of revenue−$56.40B50.7%
- Gross profit$54.78B49.3%
- Operating costs−$18.90B17.0%
- Operating income$35.88B32.3%
- Interest, other & tax−$6.31B5.7%
- Net income$29.58B26.6%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed May 1, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $111.18B$95.36B | +16.6% |
| Cost of Revenue | $56.40B$50.49B | +11.7% |
| Gross Profit | $54.78B$44.87B | +22.1% |
| R&D Expenses | $11.42B$8.55B | +33.6% |
| SG&A Expenses | $7.48B$6.73B | +11.1% |
| Operating Expenses | $18.90B$15.28B | +23.7% |
| Operating Income | $35.88B$29.59B | +21.3% |
| Net Income | $29.58B$24.78B | +19.4% |
| EPS (Basic) | $2.02$1.65 | +22.4% |
| EPS (Diluted) | $2.01$1.65 | +21.8% |
| Shares Outstanding (Basic) | 14.67B14.99B | −2.1% |
| Shares Outstanding (Diluted) | 14.73B15.06B | −2.2% |
05—Questions
Frequently Asked Questions
What was the primary driver of Apple's revenue growth in the quarter?
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%.
How did Apple's profitability fare in this quarter?
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%.
What is Apple's strategy for returning capital to shareholders?
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.
Are there any significant headwinds or risks mentioned in the filing?
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.
06—Continue