Yahoo Finance | Fri, May 1, 2026 at 7:04 AM PDT

Apple reported its second quarter earnings on Thursday, topping analysts' estimates on the top and bottom lines on strong iPhone sales. Shares in Apple rose roughly 5% in morning trade on Friday as investors assessed the results.

Apple CEO Tim Cook cited "extraordinary" demand for the iPhone 17 lineup for the earnings beat. For the quarter, Apple saw earnings per share (EPS) of $2.01 on revenue of $111.2 billion. Analysts were anticipating EPS of $1.96 and revenue of $109.66 billion, according to Bloomberg analyst consensus estimates.

That's up from the EPS of $1.65 and $95.35 billion the company saw in the same quarter last year. Apple's iPhone revenue came in at $56.99 billion, just ahead of Wall Street's projections. This marks the second consecutive quarter of more than 20% revenue growth in the segment.

The company's second-largest business, Services, generated revenue of $30.97 billion versus an expected $30.37 billion. Apple saw Services revenue of $26.64 billion in Q2 last year. Mac revenue hit $8.39 billion. Apple's Mac mini has been a breakout star of the AI boom, thanks to developers buying up the tiny desktop to power instances of AI agents. Apple also debuted its $599 MacBook Neo in early March.

The company's Greater China revenue improved to $20.49 billion. Analysts were expecting $18.9 billion. This is Apple's first quarterly report since it announced Cook will step down as CEO and be succeeded by senior vice president of hardware John Ternus.

Apple, like the rest of the smartphone and computer industry, is dealing with the impact of the global memory shortage caused by the worldwide AI data center build-out. According to the International Data Corporation, global smartphone shipments declined 4.1% in the first quarter to 289.7 million units. That broke a 10-quarter streak of growth that began in mid-2023.

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