Apple Inc. (AAPL.US) Q2 revenue and profits both exceeded expectations: strong performance of iPhone 17, better-than-expected guidance helped stock price rise after hours.

Apple Inc. (AAPL.US) released its financial performance report for the second fiscal quarter of 2026 after the market closed on Thursday, April 30. The report showed that Apple Inc. achieved a total revenue of $111.18 billion during the quarter, a significant year-on-year increase of 17%, far exceeding Wall Street analysts' previous forecast of $109.66 billion. This growth momentum was mainly driven by the explosive demand for the iPhone 17 series in global markets and strong recovery in the Mac business. In terms of profitability, Apple Inc. also set a new record for the March quarter, with a net profit of $29.58 billion, a 19% year-on-year increase. Diluted earnings per share (EPS) were $2.01, a 22% increase from the same period last year, significantly higher than the market's general expectation of $1.95. At the same time, the company's gross margin rose to 49.3%, demonstrating strong profitability. Looking at the product lines, the iPhone business remains Apple Inc.'s core growth engine, with quarterly revenue of $56.99 billion, an increase of about 24% from the same period last year. Management pointed out that the iPhone 17 series has become the most popular model in the company's history. The services business also performed well, with revenue reaching $30.01 billion, hitting a new high, with over 70% high gross margin continuously optimizing the company's overall profit structure. In addition, the Mac business rebounded to $8.40 billion driven by the M-series chip update, while the iPad business achieved revenue of $6.91 billion due to demand for new models, an increase of about 24%. Wearables, home, and accessories businesses maintained a steady operation with revenue of $7.90 billion. In terms of global market distribution, the performance rebound in Greater China became a highlight of this financial report. Revenue in this region reached $25.50 billion, not only successfully reversing the previous downward trend but also achieving double-digit percentage growth. Cook emphasized a long-term optimistic outlook for the Chinese market during the earnings call. Meanwhile, the Americas and Europe markets remained stable, contributing revenue of $45.09 billion and $28.06 billion respectively. In terms of cash flow management and shareholder returns, Apple Inc.'s board of directors approved an additional $100 billion stock repurchase plan and increased quarterly dividends by 4% to $0.27 per share, demonstrating strong confidence in future cash flow from management. Apart from the financial data, this financial report release also came with an important announcement about the company's future strategy and leadership transition. Apple Inc. announced that current hardware head John Ternus will officially take over as CEO in September 2026, replacing Tim Cook, who will transition to become the executive chairman, marking a new management era for Apple Inc. Looking ahead to the business outlook, although Apple Inc. expects revenue to maintain a high growth trajectory of 14% to 17% in the third fiscal quarter, it also issued a warning about supply chain challenges, particularly regarding potential hardware supply constraints due to a global shortage of storage chips caused by a surge in AI demand. Cook also confirmed the company's deep layout in the field of artificial intelligence, including the recent acquisition of AI startup Q.ai, with plans to introduce more intelligent services in future applications to further drive revenue growth. After the financial report was released, Apple Inc.'s stock price rose more than 0.4% after hours on Thursday, initially slightly up, then turned downward, falling by over 1% at one point. During the earnings call, Apple Inc. executives revealed that revenue for the third fiscal quarter is expected to grow by 14%-17% year-on-year, significantly surpassing analysts' expected growth rate of 9.1%. Subsequently, Apple Inc.'s stock price rose and turned positive, rising by over 4% after hours at one point. As of the time of writing, the stock price was up by 2.03% after hours.