Apple Earnings Just Dropped | Here's What You Need to Know
In a Nutshell
Apple reported stellar Q2 earnings with $111B revenue (2.1% beat), $2.01 EPS (massive beat), 49% gross margins, and beats across all segments except a slight iPhone miss due to supply constraints amid strong demand. Highlights include $100B buyback authorization, robust Greater China growth to $20.5B, upcoming iPhone 17 with advanced TSMC chips, MacBook Neo targeting budget market, and leadership transition to John Ternus in September. Stock hit near all-time highs at $284.60 (P/E 33.8, $4T market cap), performing well without heavy AI hype; a solid hold but overextended short-term—buy on pullbacks.
These notes were generated by AI and may contain inaccuracies.
Favorite part about Apple reporting earnings: wasn't flooded with the word AI. Apple isn't the sexiest of the Magnificent Companies because it doesn't slap AI in headlines. Apple reported one of its best earnings ever, up 2% after guidance call, at one point up almost 5%, hit 4%. Nasdaq still holding green.
Goal: share biggest takeaways from Apple earnings and call to learn something new. Apple nearly broke all-time highs, trading at highs of 284.60, previous highs 288. Not a really good deal at these levels short term, still overextended. If markets pull back, Apple likely to pull back. If already invested (speaker's entry in the hundreds), no intention of selling on 5% move up or down.
Better than expected EPS ($2.01 vs expectation ~$0.98-$0.99) and revenue (2.1% beat). Q2 revenue $111 billion vs expectation $109 billion. EPS beat. Gross margin 49% vs expectation 48%. Dividends 27 cents per share.
- iPhone revenue: $56.99 billion (miss vs $57.2 billion expectation)
- Services revenue: $30.98 billion vs $30.39 billion
- Mac revenue: $8.4 billion vs $8.02 billion
- Wearables revenue: $7.9 billion vs $7.7 billion
- iPad revenue: $6.91 billion vs $6.66 billion
- Greater China revenue: $20.5 billion vs $19.5 billion
Additional $100 billion in stock buyback authorized. Apple beat across the board except slight iPhone miss tied to supply constraints, not demand. CEO Tim Cook: iPhone demand off the charts, supply chain flexibility issues due to China-US logistics.
iPhone 17 family chips use variant of same TSMC manufacturing as leading AI chips. Mac sales boosted by new MacBook Neo ($500 model targeting students), could crack $20 billion lower-priced laptop market dominated by Google Chromebooks. Gross margin expansion despite higher memory chip prices, helped by buying power. Incoming CEO John Ternus takes over from Tim Cook in September; iPhone 17 and MacBook Neo spearheaded by Ternus.
Q2 2026 earnings call: Tim Cook said supply shortage for MacBook Mini and MacBook Studio continues several months. Demand attributed to customer interest in agentic AI use cases like OpenClaw, outpaced Apple's forecast. Apple focused on high-margin services and products still selling, consistent without huge growth like some tech companies.
$117 billion net income yearly, $434 billion revenue, P/E ratio 33.8, $4 trillion market cap. Reported one of best earnings without waving AI in investors' faces. Cash rich, consistent, not bothered by others. Not a super good deal now on macro outlook as everything expensive, but would buy more on sell-off. Well-run money-printing machine.
Took profits on short on SanDisk, made $5,900, left one lucky share. Ready for tomorrow's live trading session at market open, second link in description with discount.
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