Apple's Q2 earnings call today delivered much more than just the key figures for the record quarter. Cook and Parekh presented segment revenues, record install bases, AI investment plans, and a particularly personal moment for John Ternus. We've summarized the most important details for you.
Earnings calls are rarely lyrical – today's was an exception. Apple's Q2 2026 conference call delivered numerous detailed insights beyond the record-breaking figures, each telling its own story. From the historic success of the iPhone 17 and the wearables install base to Cook's emotional tribute to his successor John Ternus – we've compiled the key points that shouldn't be lost in the headlines.
iPhone: $57 billion in revenue, +22 percent
iPhone sales reached $57 billion in the March quarter – a 22 percent increase year over year and a new March quarter record. Cook told Reuters that demand was "off the charts" and acknowledged that TSMC's A19 and A19 Pro chips were a clear bottleneck. CFO Kevan Parekh added: The iPhone 17 family is the most popular lineup in Apple's history – Apple expects to have actively gained market share this quarter.
Mac: $8.4 billion – with bottlenecks
Mac revenue: $8.4 billion, up 6 percent year-over-year. Cook explicitly attributed the comparatively moderate growth rate to supply bottlenecks, which in turn are caused by "higher-than-expected demand." Apple anticipates further shortages for the June quarter – "less flexibility in the supply chain," as Cook put it. Particularly affected are the Mac mini and Mac Studio, whose supply bottlenecks are expected to persist for months. Apple recorded its best-ever launch period for first-time Mac buyers with the MacBook Neo.
Wearables: More than half are first-time Apple Watch buyers
In the Wearables, Home & Accessories segment, Apple generated $7.9 billion in revenue – a 5 percent increase. However, the more significant figure lies in the details: Over 50 percent of Apple Watch buyers in the March quarter were first-time purchasers. This represents a new all-time high for the installed base in the wearables segment – a figure Apple has rarely communicated so explicitly. For Apple, this is an important signal: After a decade on the market, the Apple Watch still appears to be a growth product, not a product that has matured.
Services: $31 billion – a new all-time record
The Services division – encompassing the App Store, Apple Music, iCloud, Apple TV, Apple Arcade, AppleCare, advertising, and payment services – broke a new all-time record in the March quarter, generating $31 billion in revenue. This was accompanied by another record: Apple now boasts over 2.5 billion active devices worldwide – also a new all-time high across all major product categories. Both the number of paying accounts and the number of transactions reached record highs during the quarter. This confirms that the Services division remains the growth and margin engine it has become under Tim Cook.
China comeback thanks to product strength
In Greater China, Apple generated $20.5 billion in revenue – roughly $4.5 billion more than in the same quarter last year. In a CNBC interview, Cook explicitly attributed the comeback to the product itself, not primarily to the somewhat more relaxed US-China relationship. This statement is likely to have been noted with interest in Beijing.
Retail sales set a record for the March quarter
Apple also reported a record for its retail division: Apple Stores recorded their strongest March quarter ever, driven by what Apple calls "very high foot traffic in the stores." This is particularly interesting because many observers have had little faith in brick-and-mortar retail in the tech industry for years. Apple's flagship stores demonstrate the opposite – these directly managed retail spaces continue to be growth drivers, not cost centers.
Memory costs are becoming a greater burden
Parekh was explicitly asked about memory prices – and the answer was clear. Apple expects "significantly higher" memory costs for the June quarter and an "increasing impact" on its business beyond that. This is also reflected in the Q3 guidance, which projects a gross margin of 47.5 to 48.5 percent – about one percentage point lower than the Q2 figure. While Apple remains within its historically strong range, the trend is clearly downward.
AI as an "incrementally on top" investment
Parekh's statement regarding the AI investment strategy was particularly interesting. Apple sees AI as a "truly important investment area" and plans to increase AI spending "in addition" to its regular investments in the product roadmap. In other words, the Apple Intelligence initiative isn't cannibalizing other areas, but rather being built on top of them. Accordingly, R&D efforts accelerated during the quarter. Cook added that Apple sees opportunities "in products and services" and is "excited about how the future is unfolding.".
Regarding the collaboration with Google – specifically the integration of Gemini into iOS functions – Cook was reserved but positive: Apple was satisfied with the current status and also with its own work, which was running in parallel.
Cook pays tribute to Ternus with unusual clarity
Cook delivered the most personal moment of the call when he paid tribute to his successor. He essentially said that there was no one on the planet he would rather entrust Apple to than John Ternus. Cook described Ternus as a brilliant engineer, a deep thinker, a strong personality, and a born leader. He would take Apple further than the company itself thought possible.
Ternus himself then spoke briefly, promising an "incredible roadmap." As expected, he revealed no details – but the appearance marked the designated CEO's first public interaction with investors.
Customs refund with reinvestment
At the end of the call, Cook confirmed that Apple has applied for a refund of the tariffs paid under IEEPA and intends to reinvest all of the refunded funds in US innovation and manufacturing. These investments would be in addition to the company's existing commitments to the US. This statement is likely to carry particular weight in the current political climate.
Cook's penultimate balance sheet
This also makes it clear: Cook has just delivered an exceptionally detailed earnings call. His last regular appearance as acting CEO will follow at the end of July with the Q3 figures. What happens after September 1st will be shaped by John Ternus – something Cook also helped to initiate today. Today's meeting was therefore not only a review of a record quarter, but also a carefully orchestrated handover with detailed statements that will guide the entire 2026 fiscal year. (Image: Shutterstock / Barbara Ash)
- Apple applies for customs refunds – and plans reinvestment in the USA
- Apple Q3 2026: Guidance promises double-digit growth
- China business: Cook explains why Apple is gaining ground again
- John Ternus: First earnings call appearance as Apple's designated CEO
- iPhone 17: Apple's most popular lineup ever
- Mac lineup is booming: Cook confirms supply shortage of the Mac mini
- iPhone 17: Tim Cook speaks of demand "off the charts"
- Apple Q2 2026: Record quarter with $111.2 billion in revenue
- iPhone 17 Pro and iPhone Air: Charging problem after completely empty battery
- Apple AI is testing multiple solutions in parallel
- Satellite smartphones: Apple clearly dominates the market
- Ternus needs to decide on iPhone prices and US production early
- Apple vs. Epic Games: Appeals Court lifts suspension
- Apple TV receives six nominations at the Gotham TV Awards
- UBS raises price target for Apple – shortly before the quarterly results
- Apple Vision Pro: First cataract surgery worldwide successful
- Claude is getting nine new connectors for creative tools
- Ted Lasso Season 4: Starts August 5 on Apple TV
- Apple TV: Survey of subscribers on content and sports
- App Store: New monthly subscriptions with a 12-month commitment are coming
- Severance: Adam Scott knows the ending and promises surprises
- iOS 26.5 Beta 4: Apple concludes the testing phase
