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AAPL
FY2026 Q2
Improving
Apple Inc. earnings call
Buzzberg read
iPhone revenue $57B, March quarter record
Apple reported a strong March quarter with 17% revenue growth and 22% EPS growth, driven by iPhone 17 family demand. Management guided June quarter revenue growth of 14-17% but flagged ongoing supply constraints on Mac and rising memory costs that will increasingly pressure gross margins. The call also served as a CEO transition event from Tim Cook to John Ternus, with no change in strategic direction. iPhone revenue grew 22% YoY to $57B, a March quarter record, despite supply constraints on SoC nodes.
Buzzberg read iPhone revenue $57B, March quarter record Apple reported a strong March quarter with 17% revenue growth and 22% EPS growth, driven by iPhone 17 family demand. Management guided June quarter revenue growth of 14-17% but flagged ongoing supply constraints on Mac and rising memory costs that will increasingly pressure gross margins. The call also served as a CEO transition event from Tim Cook to John Ternus, with no change in strategic direction. iPhone revenue grew 22% YoY to $57B, a March quarter record, despite supply constraints on SoC nodes. Read full analysisCollapse analysis
Apple reported a strong March quarter with 17% revenue growth and 22% EPS growth, driven by iPhone 17 family demand. Management guided June quarter revenue growth of 14-17% but flagged ongoing supply constraints on Mac and rising memory costs that will increasingly pressure gross margins. The call also served as a CEO transition event from Tim Cook to John Ternus, with no change in strategic direction. iPhone revenue grew 22% YoY to $57B, a March quarter record, despite supply constraints on SoC nodes.
- Mac revenue grew 6% but faced significant demand/supply imbalance on Mac Mini, Mac Studio, and MacBook Neo due to AI-driven demand.
- Services hit an all-time record of $31B (+16% YoY), with advertising and Apple Maps ads as new growth vectors.
- Memory costs are expected to rise significantly in June quarter and beyond, pressuring product gross margins.
Revenue$111.184B-23% QoQ
EPS$2.01-29% QoQ
Gross margin49.27%Reported
Operating margin32.28%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Supply chain
Supply constraints on iPhone and Mac
Risk
Memory costs to impact beyond June
Show 3 more callouts
Demand
Services all-time revenue record
Capital return
$100B additional share repurchase authorization
AI
Apple platforms as platforms for agentic AI
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $111.184B | -23% QoQ |
| EPS | $2.01 | -29% QoQ |
| Gross margin | 49.27% | Reported |
| Operating margin | 32.28% | Reported |
| Free cash flow | $26.731B | -48% QoQ |
| Capex | $1.971B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Gross margin | FY2026 Q3 | 47.5%–48.5% | 48% | Guided |
AI, capex & demand read
Management read
confident
Management's overall tone was confident, driven by record revenue, double-digit growth across segments, and optimism about the CEO transition and future roadmap.
Management AI read
Apple intelligence is woven into the core of our platforms, powered by Apple silicon and designed from the ground up to deliver intelligence that is fast, personal, and private. That same foundation is drawing developers and researchers to our products as powerful platforms for building and running agentic AI.
all 5 named companies below
Companiesreturns since call
Customers
PERPLEXITY
Customers
Kevan Parekh
Perplexity's adoption of Mac for AI development validates Apple's silicon advantage in agentic AI workloads, strengthening Apple's enterprise ecosystem.
Evidence
“leading AI developers like Perplexity are choosing Mac as their preferred platform to build enterprise-grade AI assistants”
Customers
Kevan Parekh
Freshworks' fleet deployment signals enterprise preference for Mac in AI R&D, potentially driving incremental Mac demand from the software sector.
Evidence
“leading enterprise software provider Freshworks deployed over 5,000 MacBook Pro and MacBook Air to accelerate their AI development.”
Customers
Kevan Parekh
Marsh's large-scale iPhone refresh underscores Apple's enterprise security appeal and could signal a broader corporate upgrade cycle.
Evidence
“Marsh, a leading professional services firm, deployed a large-scale refresh of corporate devices to iPhone 17 as part of a commitment to security”
Partners
Partners
Tim Cook
Apple's continued partnership with Google for foundational models indicates a stable, co-opetitive AI strategy that benefits Google's cloud/AI services exposure.
Evidence
“The collaboration with Google is going well.”
Suppliers
Suppliers
Tim Cook
Apple's commitment to purchase well over 100 million advanced chips from TSMC's Arizona facility indicates a multi-year, multi-billion-dollar anchor order for leading-edge nodes, strengthening TSMC's fab utilization and pricing leverage. — Reinforces TSMC's revenue visibility and U.S. fab ramp, while also signaling Apple's de-risking of geopolitical supply chain exposure.
Evidence
“At TSMC's Arizona facility, for example, Apple is on track to purchase well over 100 million advanced chips.”
External signals
Supply-chain alpha · 1returns since call
Apple's commitment to purchase well over 100 million advanced chips from TSMC's Arizona facility indicates a multi-year, multi-billion-dollar anchor order for leading-edge nodes, strengthening TSMC's fab utilization and pricing leverage.
Methodology & coverage
Management-only analysis. All 5 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.