Share to ClassroomApple Earnings Soar on iPhone 17 Demand
Apple has announced sharply better-than-expected results for the second quarter of 2026, with revenue of $111.18billion— up about 17 percent year on year— and earnings of $2.01per share, comfortably ahead of analyst forecasts of around $109billion in revenue and $1.95per share. Net income rose roughly 22 percent to $29.58billion. Chief executive Tim Cook called the period Apple's best March quarter ever, citing double-digit growth across every geographic segment and extraordinary demand for the iPhone 17 lineup. iPhone revenue alone reached a March-quarter record of $56.99billion, while revenue from greater China rose to $20.4billion. Apple's shares climbed in after-hours trading following the release.
Several factors lay behind the headline numbers. Strong consumer interest in the flagship iPhone 17 was reinforced by March's launches of the more affordable iPhone 17e and the entry-level MacBook Neo, the latter a product Cook said Apple had under-called the level of enthusiasm for. He also pointed to growing momentum in India, where the company holds only a modest share but where he is over-the-moon excited about future prospects. The report came just days after Apple confirmed that Cook, who has run the company for fifteen years and overseen a roughly $3.6trillion increase in market value, will step down on 1 September. He will remain involved as executive chairman.
Cook's successor, John Ternus, currently senior vice-president of hardware, briefly joined the analyst call and described the moment as the most exciting time in my 25-year career at Apple. Cook told investors he trusts no one on this planet more to lead Apple, while also flagging headwinds: memory chip costs are expected to be significantly higher next quarter, with Samsung reporting a near 50-fold rise in memory profit the same day. Apple has invested less in artificial intelligence (AI) than rivals such as Google and Microsoft, but Cook said it would treat AI not as a standalone feature but as an essential, intuitive part of the experience, promising a revamped Siri later this year.
