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Apple reported stronger-than-expected second-quarter results on Thursday, supported by higher iPhone sales, stronger Services revenue, and a recovery in Greater China. The company also issued a stronger forecast for the current quarter, although it warned that memory costs and Mac supply limits may continue for several months.
Shares rose about 3% in premarket trading on Friday after Apple closed at $271.35 on Thursday. Investors reacted to revenue, profit, and guidance that came in above Wall Street expectations.
Apple reported earnings per share of $2.01 on revenue of $111.2 billion for the quarter. Analysts had expected earnings of $1.96 per share on revenue of $109.66 billion, according to Bloomberg consensus estimates. The result also marked growth from $1.65 in earnings per share and $95.35 billion in revenue a year earlier.
iPhone revenue reached $56.99 billion, slightly above market forecasts. The segment recorded more than 20% revenue growth for the second straight quarter. Apple Chief Executive Tim Cook said demand for the iPhone 17 lineup was ‘extraordinary,’ although the company still faces supply and cost pressures across parts of its hardware business.
Cook also said the iPhone 17 line became Apple’s most popular smartphone series based on sales through the March quarter. He added, “We’re seeing a strong response — not only from customers upgrading from previous generations — but also from people choosing iPhone for the very first time.”
Greater China revenue improved to $20.49 billion, beating analyst expectations of $18.9 billion. The region had been a weaker area for Apple in recent years, but the latest quarter showed stronger demand across key product lines.
Services revenue also came in ahead of estimates. The segment generated $30.97 billion, compared with expectations of $30.37 billion. A year earlier, Services revenue stood at $26.64 billion. The business includes the App Store, iCloud, Apple Music, Apple TV, and other digital services.
Mac revenue reached $8.39 billion during the quarter. Demand came from products such as the Mac mini and the new $599 MacBook Neo, which launched in March. Developers have also been buying Mac devices to support AI-related tools, including OpenClaw.
Apple also reported growth across other hardware lines. Mac sales rose to about $8.4 billion, iPad revenue reached $6.9 billion, and Wearables, Home and Accessories generated $7.9 billion. However, the company said some Mac models remain hard to find because demand exceeded internal estimates.
Apple forecast revenue growth of 14% to 17% for the current quarter, above the 9.1% average estimate from analysts. The stronger outlook helped support the stock in after-hours and premarket trading.
However, Apple warned that memory-chip costs will rise. Cook said memory expenses would climb ‘significantly higher’ in the current quarter. He also said there would be an ‘increasing impact on the business’ in later quarters, but he did not say whether Apple plans to raise prices.
The company said its main supply limits involve processors rather than memory chips. The issue has affected the Mac mini, Mac Studio, and MacBook Neo. Cook said Apple ‘under-called’ demand for some Mac products and expects constraints to last ‘several months.’
Apple also announced plans to buy back up to $100 billion in shares and raise its dividend. The company said it would wind down its net cash strategy and begin viewing cash and debt separately.
The earnings report also comes ahead of a leadership change. John Ternus will replace Tim Cook as chief executive on September 1, while Cook will remain executive chairman. Ternus said Apple has ‘an incredible road map ahead’ as the company works on new products, services, and AI features.
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