Q2 2026 Apple Inc Earnings Call Transcript
Key Points
- Apple Inc (AAPL) reported a record revenue of $111.2 billion for the March quarter, up 17% year over year.
- iPhone revenue grew 22% year over year, achieving a March quarter record despite supply constraints.
- Services revenue reached an all-time high of $31 billion, with double-digit growth in both developed and emerging markets.
- The Mac lineup saw a 6% revenue increase, driven by strong demand for new products like MacBook Neo.
- Apple Inc (AAPL) achieved March quarter revenue records in every geographic segment, including strong growth in Greater China and India.
- Apple Inc (AAPL) faced supply constraints, particularly affecting iPhone and Mac models, which impacted potential revenue growth.
- Operating expenses increased by 24% year over year, slightly above the high end of guidance due to a one-time SG&A expense.
- The company anticipates significantly higher memory costs in the upcoming quarters, which could impact margins.
- Despite strong revenue growth, the product gross margin decreased by 200 basis points sequentially due to higher memory costs and seasonal loss of leverage.
- Apple Inc (AAPL) is no longer providing net cash neutral as a formal target, which may create uncertainty regarding future capital allocation strategies.
Good afternoon, and welcome to the Apple Q2 fiscal year 2026 earnings conference call. My name is Suhasini Chandramouli, Director of Investor Relations. Today's call is being recorded.
Speaking first today is Apple's CEO, Tim Cook; John Ternus will be joining after that for a brief set of remarks, and he'll be followed by CFO, Kevan Parekh. After that, we'll open the call to questions from analysts.
Please note that some of the information you'll hear during our discussion today will consist of forward-looking statements including, without limitation, those regarding revenue, gross margin, operating expenses, other income and expense, taxes, capital allocation, and future business outlook. These statements involve risks and uncertainties that may cause actual results or trends to differ materially from our forecast, including risks related to the potential impact to the company's business and results of operations from macroeconomic conditions, tariffs, and other measures and legal and regulatory proceedings.
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