Apple doesn’t throw around superlatives lightly. So when CFO Kevan Parekh stood up on the Q2 FY2026 earnings call and said “the iPhone 17 family is now the most popular lineup in our history” that landed hard. Tim Cook followed with demand being “off the charts.” The numbers back both of them up completely.
Apple reported $111.2 billion in quarterly revenue, a 17% jump year-over-year and the best March quarter in the company’s history. Earnings per share hit $2.01, up 22% annually. Net income landed around $29.6 billion with a gross margin of approximately 49.3%, another record. By any measure, this is Apple firing on every cylinder simultaneously.
The iPhone carried the quarter almost single-handedly. $56.99 billion in iPhone revenue roughly 51% of Apple’s total came in slightly above Wall Street expectations and represented 21-22% year-over-year growth. The broader iPhone 17 lineup deserves the credit: the standard model, Pro, Pro Max, the budget-focused iPhone 17e, and the ultra-thin iPhone Air together captured buyers across every price tier in a way no previous lineup managed.
China was a standout story; sales reportedly surged around 28%, helping Apple reclaim momentum in a market that had been genuinely difficult for several quarters. First-time iPhone buyers and Android switchers were both cited as meaningful contributors.
Services hit an all-time high. Apple also announced a $100 billion share buyback and raised its quarterly dividend 4% to $0.27 per share signals of serious management confidence.
The one cloud: supply couldn’t keep up with demand. Chip constraints and rising memory costs mean Apple likely left significant revenue on the table and those same pressures will shape iPhone 18 planning directly.
Apple’s best quarter ever came with a warning label. The iPhone 18 cycle just got a lot more interesting.
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