Apple Easily Beats Wall Street Expectations, Services Revenue Shoots Up 16% to Record $31 Billion

Apple hit another high note in the first three months of 2026, delivering an earnings beat driven by a surge in iPhone sales and continued momentum in its Services segment.

Apple’s Services business revenue in the quarter grew 16.3% to $30.98 billion. That beat Wall Street expectations for $30.4 billion, according to StreetAccount. The segment includes the App Store, Apple TV, Apple Music, Apple Pay, AppleCare, iCloud and advertising.

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Overall, Apple reported revenue of $111.2 billion, up 17% year over year, and net income of $29.58 billion for the period ended March X (Q2 of its fiscal 2026). That translated to diluted to earnings per share of $2.01, up 22%. Analysts expected Apple to post revenue of $109.7 billion and earnings of $1.95 per share, per according to LSEG Data & Analytics.

In the quarter, iPhone sales jumped 22% — to an all-time high of $57.99 billion, also handily beating Wall Street forecasts.

The latest earnings report comes after Apple announced that Tim Cook will step down as CEO to become executive chairman on Sept. 1, 2026. At that time, John Ternus, senior VP of hardware engineering, will become Apple’s next CEO.

“Today Apple is proud to report our best March quarter ever, with revenue of $111.2 billion and double-digit growth across every geographic segment,” Cook said in prepared remarks. “iPhone achieved a March quarter revenue record, fueled by such extraordinary demand for the iPhone 17 lineup. During the quarter, Services achieved yet another all-time record, and we were excited to introduce remarkable new products to our strongest lineup ever. That included the addition of the iPhone 17e and the M4-powered iPad Air, along with the launch of MacBook Neo, which is captivating customers all around the world.”