The 2026 Q2 earnings season remains in high gear, with many notable companies reporting in the last several days. Of course, the headliners include members of the Magnificent 7 group, including Apple AAPL, which is the latest member of the beloved group to report.
Apple Reports Results
Apple’s results reflected its strongest June-quarter period ever, with quarterly revenue of $109.4 billion growing 16% year-over-year. Adjusted EPS came in at $2.02, growing an even stronger 29% from the year-ago period.
It also reported double-digit revenue growth across iPhone, Mac, and Services, with similar gains in every geographic segment. Its installed base of active devices reached an all-time high across its major product categories, with its overall gross margin seeing a benefit from tariff refunds.
As usual, the iPhone reflected the mega-cap tech giant’s biggest source of revenue, with sales coming in at $54.2 billion and growing by a strong 21.6% year-over-year. Below is a chart illustrating the iPhone’s revenue on a quarterly basis.
As we can see, the December period is always the outlier for Apple, capturing the bulk of new model sales.
Image Source: Zacks Investment Research
Though iPhone reflects the greatest portion of sales, the Services category has quickly grown to be another big top line contributor over recent years, with quarterly sales of $30.7 billion reflecting a 12% YoY increase. While iPhone sales exceeded our consensus estimate, Services results fell a bit short, likely explaining a bit of the weak price action the stock is seeing following the results.
Apple’s cash-generating abilities have always been a critical part of investor sentiment surrounding the stock, with it also reporting record operating cash flow for its June-quarter period. The strong cash-generating abilities have allowed shares to trade at a premium, with its dividend payouts pleasing investors looking to obtain top-tier tech exposure paired with paydays.
Bottom Line
Apple AAPL is one of the latest members of the beloved Magnificent 7 group to report its earnings results, with the initial share reaction reflecting weakness despite overall solid results. That said, Services results came in a tad below expectations, with China results also not overly pleasing the market.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
