Apple posts its best March quarter ever, with revenue surging 17 per cent to $111.2 billion

CALIFORNIA: Apple does not do modest. Its fiscal second quarter results, covering the three months to March 28th, 2026, are a reminder of what a well-oiled machine looks like at full throttle. Revenue came in at $111.2 billion, up 17 per cent year over year and a record for any March quarter in the company’s history. Net income hit $29.6 billion, up from $24.8 billion a year earlier. Diluted earnings per share rose 22 per cent to $2.01.

“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,” said Tim Cook, Apple’s chief executive. The numbers back him up entirely.

The iPhone still carries the load

iPhone revenue surged to $57 billion in the quarter, up from $46.8 billion a year earlier, a jump of nearly 22 per cent and a March quarter record. Cook attributed the performance to “extraordinary demand for the iPhone 17 lineup,” which now includes the newly launched iPhone 17e. The handset that built Apple’s empire continues to defy the sceptics who have long predicted a plateau.

Products overall generated $80.2 billion in revenue, up from $68.7 billion, with Mac contributing $8.4 billion, iPad $6.9 billion, and Wearables, Home and Accessories $7.9 billion. The quarter also saw the launch of the M4-powered iPad Air and the MacBook Neo, which Cook said is “captivating customers all around the world.”

Services: the machine within the machine

If iPhone is Apple’s engine, Services is increasingly its fuel. Revenue from the segment reached $30.98 billion in the quarter, up from $26.6 billion a year earlier, hitting yet another all-time high. Over the first six months of the fiscal year, Services has generated $61 billion, against $53 billion in the comparable period. The gross margin story here is compelling: while product gross margins are inherently constrained by hardware costs, Services carries structurally higher margins and continues to grow at pace.

Geography: China roars back

Perhaps the most striking regional story is Greater China, which posted revenue of $20.5 billion in the quarter, up sharply from $16 billion a year earlier, a rise of nearly 28 per cent. That performance will quiet, at least temporarily, concerns about Apple’s vulnerability in its most contested market. The Americas contributed $45.1 billion, Europe $28.1 billion, Japan $8.4 billion, and the Rest of Asia Pacific $9.1 billion. Every segment grew.

The income statement in full

The gross margin for the quarter came in at $54.8 billion, against $44.9 billion a year ago, reflecting Apple’s pricing discipline and services mix. Research and development spending rose sharply to $11.4 billion from $8.6 billion, a 33.6 per cent increase that signals the company is investing heavily in its next act, likely artificial intelligence and next-generation hardware. Selling, general, and administrative costs rose more modestly to $7.5 billion from $6.7 billion. Operating income reached $35.9 billion, up from $29.6 billion, and net income after a tax provision of $6.3 billion settled at $29.6 billion.

For the six months to March 28th, total revenue was $254.9 billion against $219.7 billion, with net income of $71.7 billion against $61.1 billion.

The balance sheet: cash rich and buying back

Apple ended the quarter with $45.6 billion in cash and cash equivalents, up from $35.9 billion at its last fiscal year-end in September 2025. Add in current and non-current marketable securities of $101 billion, and the liquidity position is formidable. Total assets stood at $371.1 billion. Shareholders’ equity more than doubled over the six-month period, from $73.7 billion to $106.5 billion, driven by surging retained earnings that swung from a deficit of $14.3 billion to a positive $12.4 billion.

Term debt, combining current and non-current portions, stood at $82.7 billion. Commercial paper obligations came in at $2 billion, down sharply from $8 billion at year-end, suggesting Apple is actively managing its short-term liabilities.

Cash generation: extraordinary by any measure

The cash flow statement underlines just how profitable the Apple model has become. Operating cash flow for the six months to March 28th was $82.6 billion, against $53.9 billion in the comparable period a year earlier, an increase of over 53 per cent. The quarter alone generated more than $28 billion in operating cash flow, itself a March quarter record.

“Our strong business performance during the March quarter generated over $28 billion in operating cash flow and drove new March quarter records for both operating cash flow and EPS,” said Kevan Parekh, Apple’s chief financial officer. “Continued strong customer demand for our products and services once again helped us achieve a new all-time high for our installed base of active devices across all major product categories and geographic segments.”

Over the six-month period, Apple spent $37 billion buying back its own stock and $7.7 billion on dividends. Capital expenditure was a relatively modest $4.3 billion.

Rewarding shareholders handsomely

Apple’s board wasted no time sharing the quarter’s bounty. It declared a cash dividend of $0.27 per share, an increase of 4 per cent, payable on May 14th, 2026, to shareholders of record as of May 11th. More dramatically, it authorised a fresh $100 billion share repurchase programme, one of the largest buybacks in corporate history and a statement of supreme confidence in the company’s ability to keep generating cash.

Apple hosted a live webcast of its results conference call at 2:00 pm Pacific Time on April 30th, 2026, at apple.com/investor/earnings-call, with a replay available for approximately two weeks.

For a company of Apple’s size, growing revenue by 17 per cent, net income by 19 per cent, and operating cash flow by 53 per cent in a single six-month period is not supposed to be possible. Apple, characteristically, did not get the memo.