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Apple set a March-quarter record Thursday, reporting $111.2 billion in revenue and telling investors it expects the June quarter to grow 14% to 17% from a year earlier. Apple's financial statements put diluted earnings at $2.01 a share for the three months ended March 28, while the press release put operating cash flow above $28 billion. The call was Apple's first since its April announcement that hardware chief John Ternus will replace Tim Cook as chief executive on Sept. 1.
Key Takeaways
- Apple reported $111.2 billion in March-quarter revenue and forecast 14% to 17% growth for June.
- iPhone 17 set a March record, but advanced-node chip supply limited shipments.
- MacBook Neo, Mac mini and Mac Studio constraints are expected to continue into the current quarter.
- Apple warned memory costs will pressure margins as John Ternus prepares for the Sept. 1 handoff.
AI-generated summary, reviewed by an editor. More on our AI guidelines.
iPhone 17 outpaces supply
Apple disclosed iPhone sales of $56.99 billion, up 22% from a year earlier and a March-quarter record. Cook told Reuters that demand for the iPhone 17 lineup was "off the charts" but that advanced-node processor supply limited shipments in the quarter.
The results topped analyst estimates of $109.66 billion in sales and $1.95 a share, Reuters reported, citing LSEG data. The company forecast 14% to 17% sales growth for the current quarter, above the 9.5% growth analysts expected. Apple shares rose nearly 4% after hours after the outlook and a new $100 billion buyback authorization.
Macs become the next constraint
Mac revenue reached $8.4 billion, above analyst estimates cited by CNBC, after Apple launched the MacBook Neo in March. Cook told analysts that June constraints would fall mostly on Mac mini, Mac Studio and MacBook Neo because Apple had "undercalled" demand.
The Neo starts at $599 for consumers, according to CNBC, and Reuters reported that the student price is $500. Its early reception matters for Ternus because the April succession profile centered the low-cost notebook as a product bet that put hardware strategy closer to Apple's daily growth story.
Memory costs pressure margins
Apple's gross margin was 49.3% in the March quarter, above estimates cited by CNBC. For June, the company forecast 47.5% to 48.5% as Cook warned of "significantly higher memory costs" and an increasing impact after June.
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The warning places Apple inside the same industry memory squeeze that has hit device makers across the electronics market. Samsung, SK Hynix and Micron are adding capacity, but current plans still cover only about 60% of expected demand as AI servers get priority.
Services and China add cover
Services revenue rose 16% to $30.98 billion, another record for the segment. Greater China sales increased 28% to $20.5 billion, beating analyst estimates cited by Reuters and giving Apple growth in a market where local competition has pressured iPhone shipments.
Cook also told analysts the Google collaboration for Siri is "going well" and that Apple is increasing research and development spending for AI. Operating expenses were $18.9 billion, up 24%, while research and development reached $11.42 billion, according to CNBC.
Ternus gets a cleaner handoff
The September handoff now follows a March result in which Apple disclosed records for iPhone, Services and operating cash flow. Ternus inherits strong iPhone demand, a balance sheet that still allows a $100 billion buyback and constrained Macs. He also inherits rising component costs and a Siri plan that Cook tied to this year's software cycle.
Cook will remain executive chairman after Sept. 1. Apple's next formal product update is WWDC in June, when developers return to Apple Park for the software roadmap.
Frequently Asked Questions
What did Apple report for fiscal Q2 2026?
Apple reported $111.2 billion in revenue, up 17% from a year earlier, and diluted earnings of $2.01 a share for the three months ended March 28.
What did Apple forecast for the June quarter?
Apple forecast 14% to 17% revenue growth for the June quarter and gross margin of 47.5% to 48.5%, with memory costs expected to weigh more heavily.
Why are Macs supply constrained?
Cook told analysts demand is exceeding Apple’s plan for MacBook Neo, Mac mini and Mac Studio. He said some Mac constraints may take several months to resolve.
How did iPhone 17 perform?
Apple disclosed $56.99 billion in iPhone sales, up 22% from a year earlier. Cook told Reuters demand for the iPhone 17 lineup was off the charts.
What changes when John Ternus becomes CEO?
Ternus takes over on Sept. 1 while Cook becomes executive chairman. He inherits strong demand, higher component costs, Mac constraints and Apple’s Siri timeline.
AI-generated summary, reviewed by an editor. More on our AI guidelines.
Marcus Schuler
Editor-in-Chief and founder of Implicator.ai. Former ARD correspondent and senior broadcast journalist with 10+ years covering tech. Writes daily briefings on policy and market developments. Based in San Francisco. E-mail: [email protected]
