Full Breakdown
Apple Posts Record $111.2 B Revenue in Q2 2026 Amid Supply Constraints and CEO Transition
5/2/2026, 3:27:28 AM
Core Financial Results
Apple posted $111.2 billion in revenue for the quarter ended March 28, 2026, up 17 % YoY. Net income was $29.58 billion and diluted EPS $2.01, a 22 % rise. Segment revenue: iPhone $56.99 billion, Mac $8.40 billion, iPad $6.91 billion, Wearables/Home/Accessories $7.90 billion, Services $30.98 billion (up 16.3 %). Geographic revenue was $45.1 billion in the Americas (up 11.9 %), $28.055 billion in Europe, $20.5 billion in Greater China (up 28 %), $8.401 billion in Japan, and $9.138 billion in the rest of Asia-Pacific. Operating cash flow topped $28 billion. The board raised the cash dividend to $0.27 per share and authorized an extra $100 billion share-repurchase program.
Background & Supply-Chain Context
The quarter coincided with a global memory shortage that raised component costs and limited system-on-chip supply for iPhones and Macs. Apple noted these constraints in its earnings call. The company also announced CEO Tim Cook’s transition to executive chairman on Sept. 1, 2026, with hardware VP John Ternus slated as his successor.
Key Executives & Governance
Tim Cook, outgoing CEO, will become executive chairman; John Ternus, VP of hardware engineering, will assume the CEO role; CFO Kevan Parekh managed finance; the board approved a dividend increase and $100 billion buyback.
Official Statements & Company Outlook
Cook said the quarter was the strongest March quarter on record, highlighting double-digit growth across all regions and the iPhone 17 lineup. Parekh emphasized the $28 billion operating cash flow and record EPS, citing strong demand for hardware and services. The board framed the dividend raise and buyback as a broader capital-return move. Apple reaffirmed guidance for June-quarter revenue growth of 14-17 % YoY despite supply-chain pressures.
Criticism & Market Reaction
Analysts noted iPhone revenue of $56.99 billion fell short of consensus forecasts of $57.21 billion, a second miss in three quarters. Supply-chain bottlenecks for memory and chips were cited as the primary cause. The miss tempered enthusiasm, though the stock rose roughly 3 % in after-hours trading.
Conflicting Reports & Gaps
Sources vary on iPhone revenue ($56.99 billion, $57.0 billion, or $57.99 billion) and growth rates (22 % versus 20 %). Forecasts also differ, ranging from $56.5 billion to $57.21 billion. No source clarifies the origin of these discrepancies.
Verbatim Quotes
- “iPhone demand was off the charts but supply constrained,” — Tim Cook, CEO
- “most popular lineup in our history” — Tim Cook, CEO
- “Today Apple is proud to report our best March quarter ever, with revenue of $111.2 billion and double-digit growth across every geographic segment.” — Tim Cook, CEO
- “ Apple CFO Kevan Parekh added: “Our strong business performance during the March quarter generated over $28 billion in operating cash flow and drove new March quarter records for both operating cash flow and EPS.” — Kevan Parekh, CFO
What’s Next
Apple will host its Worldwide Developers Conference in June, unveiling new hardware and software. The company plans to diversify its supply chain, including expanded manufacturing in India, while executing the $100 billion buyback over the coming months.
