iPhone and Services Drive Apple to Record Q2 2026 Despite Supply Constraints
iPhone and Services Drive Apple to Record Q2 2026 Despite Supply Constraints
Publish Date: 2026-05-01 16:48:00
Source Domain: tidbits.com
Tim Cook led off Apple’s Q2 2026 earnings call by talking briefly about how he’s moving from CEO to executive chairman of the board in September, and he brought on incoming CEO John Ternus to say a few words. It was another building block in Apple’s carefully choreographed transition messaging, designed in this case to minimize investor uncertainty. Both thanked Apple shareholders, particularly long-term shareholders, as a not-so-subtle way of reassuring institutional investors.
Ternus seems ready to step into the CEO role in these calls, with the requisite superlatives (“incredible roadmap”), an acknowledgment that he’ll be dodging analyst questions, and Cookian phrasing (“couldn’t be more optimistic”). He said:
As Tim mentioned, we have an incredible roadmap ahead. And while you’re not going to get me to talk about the details of that roadmap, suffice it to say, this is the most exciting time in my 25-year career at Apple to be building products and services. There are so many opportunities before us, and I couldn’t be more optimistic about what’s to come.
Back at the actual results, Apple announced net profits of $29.6 billion ($2.01 per diluted share) on revenues of $111.2 billion, a record for the March quarter. The company’s revenues are up 17% compared to the year-ago quarter, with earnings per share up by 22% (see “Apple Q2 2025 Financials Solid Despite Upcoming Tariff Uncertainty”). With a March quarter revenue record for iPhone sales (up 22% from the year-ago quarter) and yet another all-time record for Services income (up 16%), Apple achieved double-digit revenue growth across every geographic segment.
As in Q1 2026, the iPhone and Services revenues squeezed Apple’s other product lines, even as those other segments posted healthy growth (see “Apple Propelled to Record Q1 2026 Financials by iPhone and Services,” 30 January 2026). The iPhone share of the product mix grew 2% to 51%, and Services held…
