Apple Reports Record Revenue Amid Leadership Transition and Product Launches
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Sales of iPhones rose 21.7% to nearly $57 billion, while overall revenue jumped to $111.2 billion. Apple CEO Tim Cook, who will transition to role as executive chairman on Sept. 1, said the earnings beat occured despite shortages of its MacBook and iPhones in stores.
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CNBCApple delivered strong earnings results on Thursday, boosting expectations that the stock has much more room to run even as rising memory costs put pressure on the iPhone maker's profitability. The "Magnificent Seven" name posted $111.18 billion in revenue for the second fiscal quarter, better than the $109.66 billion forecast. The sales total included a lower-than-expected $56.99 billion from iPhone sales, compared to the $57.21 billion expected by analysts polled by LSEG. Mac and iPad revenue were both better than expected. Earnings came in at $2.01 per share, or above the Street's consensus estimate of $1.95 per share. The company also forecast that revenue in the June quarter will increase between 14% and 17% from a year earlier.
Washington Times BusinessRevenue rose about 17% to $111.18 billion from $95.36 billion a year earlier. iPhone sales made up the bulk of revenue, bringing in $56.99 billion.
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Incoming CEO John Ternus, who currently serves as Apple’s hardware chief, made his debut on the company’s earnings call, said the company has an “incredible roadmap ahead.”
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CNBCWhile device sales are always key to Apple's results, top of mind for Wall Street is what to expect from incoming CEO John Ternus. Apple announced on April 20, that Ternus is succeeding Cook, who will become executive chairman on Sept. 1.
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Citi: buy, $315 Apple could sees upside of 16%, per analyst Atif Malik's price target on the stock. "Macro woes and impact on consumer spending are valid concerns, but we believe Apple's growth in [the] active installed base of products and subscriptions is sticky, and should help to drive demand in future years. The full product + software + service package is what makes Apple unique as others do not control this. We also expect to see gross margin expansion driven by higher blended ASP in iPhone sales mix, further share gain in emerging markets, continued self-design of cellular chips to reduce BOM costs, and higher margin services sales mix.
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That strategy, along with massive buying power, has helped Apple navigate higher memory chip prices. Apple said gross margins were 49.27%, above estimates of 48.38%, according to LSEG data.
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CNBCWhile those concerns may not fully dwindle until investors gain visibility into pricing for the iPhone 18 lineup, Apple continues to move the bar higher on gross margins in the interim by reporting an all-time record of 49.3% in F2Q26 (March-end) and guiding to a record F3Q26 (June-end) margin of ~48%, again ahead of investor expectations.
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High demand has caused supply constraints, Cook said on a conference call with analysts Thursday. Those constraints have been driven by the availability of the advanced technology used to form what is essentially a device’s brain. In the current quarter that runs through June, supply constraints will affect several Mac models, in part because the “customer response to Mac Neo has just been off the charts” with higher-than-expected demand, Cook added.
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CNBCSales of iPhones rose 22% in the quarter from a year earlier. Like other consumer electronics companies and device makers, Apple faces supply chain constraints, largely due to the global memory shortage that's being driven by soaring artificial intelligence demand. Meta and Microsoft said Wednesday that higher memory prices contributed to their increased capital expenditures forecasts for the year.
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In March, Apple announced a number of new products, including its iPhone 17e, a refreshed iPad Air laptop with an M4 chip in 11-inch and 13-inch sizes. it also unveiled the MacBook Neo, a low-cost laptop priced at $599 and aimed at students and budget-conscious consumers.
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Washington Times BusinessThis March, Apple introduced the new iPhone 17e and the MacBook Neo, an entry-level laptop, the company’s most aggressive attempts at moving into the affordable market.
New York Post BusinessAnother product masterminded by Ternus was the MacBook Neo, which costs $500 for students. Analysts believe it could help Apple crack a new $20 billion market for lower-priced laptops now dominated by Google Chromebooks. Apple said Mac sales, which included several weeks of Neo sales, were $8.4 billion, compared with estimates of $8.02 billion.
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Apple’s greater China sales were $20.5 billion, beating analyst estimates of $19.45 billion, according to Visible Alpha data.
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CNBCGreater China sales increased during the quarter to $20.5 billion, up 28% from $16 billion a year ago. The China region is Apple's third biggest, behind Americas and Europe.
3 details only one outlet reported
Independent claims that didn't surface elsewhere in our corpus. Treat as supplementary — not corroborated across outlets.
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01 New York Post Business The Big Tech giant crushed earnings expectations in second-quarter results released Thursday, bolstered by recent releases such as the $599 MacBook Neo, updated versions of the higher-end MacBook Pro and iPad and the iPhone 17e.
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02 CNBC Shares have traded flat in the year to date, underperforming the overall market as investors express doubts that Apple can pull off its ambitious push into artificial intelligence, particularly amid an ongoing memory supply crunch. AAPL YTD mountain Shares are trading flat in the year to date. However, Apple's latest earnings results show that its efforts are beginning to pay off, putting it on the path to unlocking considerable growth and value creation in the long term, per Morgan Stanley. Here's what other shops on Wall Street are saying about the "Magnificent Seven" name.
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03 Washington Times Business The January-March results announced Thursday reflect the continued momentum of iPhone sales. Cook said in a statement that it was the company’s best March quarter ever, with “double-digit growth across every geographic segment.”
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