AI Takeaway
Apple delivered a strong fiscal Q2 2026 with revenue surging 15.7% YoY to $143.8B and net income rising 15.9% to $42.1B, driven by robust gross margin expansion and an 80.1% jump in operating cash flow.
Revenue
$143.76B
++15.65% YoY
EPS (Basic)
$2.85
++18.26% YoY
Gross Margin
48.2%
++1.28% YoY
Operating Income
$50.85B
++18.72% YoY
Apple's total revenue grew 15.7% YoY to $143.8B in Q2 2026, up from $124.3B in the prior-year period, reflecting broad-based demand strength across its product and services portfolio.
Source: Source: 10-Q Income Statement
Gross margin improved by approximately 130 basis points YoY to 48.2%, up from 46.9%, indicating favorable product mix shifts and improved cost efficiency despite a 12.9% rise in cost of revenue to $74.5B.
Source: Source: 10-Q Income Statement & Key Ratios
R&D expenses surged 31.7% YoY to $10.9B, far outpacing revenue growth, signaling aggressive investment in next-generation technologies such as AI and silicon development.
Source: Source: 10-Q Income Statement
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Upgrade to unlockApple's current ratio stands at 0.97, meaning current liabilities of $162.4B slightly exceed current assets of $158.1B. While Apple's strong cash generation mitigates near-term liquidity risk, this metric warrants monitoring, particularly if operating cash flows were to deteriorate.
Source: Source: 10-Q Balance Sheet & Key Ratios
Unlock 4 more detailed risk analysis
Upgrade to unlock| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $143.76B | $124.3B | +15.65% |
Cost of Revenue | $74.53B | $66.03B | +12.87% |
Gross Profit | $69.23B | $58.27B | +18.80% |
Operating Income | $50.85B | $42.83B | +18.72% |
Net Income | $42.1B | $36.33B | +15.87% |
EPS (Basic) | $2.85 | $2.41 | +18.26% |
EPS (Diluted) | $2.84 | $2.40 | +18.33% |
R&D Expense | $10.89B | $8.27B | +31.68% |
SG&A Expense | $7.49B | $7.17B | +4.42% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $379.3B | $344.08B | +10.23% |
Current Assets | $158.1B | $133.24B | +18.66% |
Total Liabilities | $291.11B | $277.33B | +4.97% |
Current Liabilities | $162.37B | $144.37B | +12.47% |
Stockholders' Equity | $88.19B | $66.76B | +32.10% |
Cash & Equivalents | $45.32B | $30.3B | +49.57% |
Long-Term Debt | $88.5B | $94.8B | -6.65% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $53.92B | $29.93B | +80.14% |
Investing Cash Flow | $-4.89B | $9.79B | -149.90% |
Financing Cash Flow | $-39.66B | $-39.37B | -0.72% |
Dividends Paid | $3.92B | $3.86B | +1.69% |
Share Buybacks | $24.7B | $23.61B | +4.64% |
D&A | $3.21B | $3.08B | +4.35% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 48.2% | 46.9% | +1.28% |
Operating Margin | 35.4% | 34.5% | +0.92% |
Net Margin | 29.3% | — | — |
ROE | 47.7% | — | — |
ROA | 11.1% | — | — |
Current Ratio | $0.974 | — | — |
Debt to Equity | $3.301 | — | — |
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Apple reported Q2 2026 diluted EPS of $2.84, up 18.3% YoY from $2.40, and revenue of $143.8B, up 15.7% YoY. These results reflect strong outperformance relative to the prior year period, though comparison to Wall Street consensus estimates requires external analyst data not included in the filing.
Apple's Q2 2026 highlights include revenue of $143.8B (+15.7% YoY), gross margin expansion to 48.2%, and a remarkable 80.1% surge in operating cash flow to $53.9B. R&D spending jumped 31.7% to $10.9B, signaling heavy investment in AI and next-generation technologies, while the company returned $28.6B to shareholders via buybacks and dividends.
Apple's revenue grew 15.7% year-over-year to $143.8B in Q2 2026, compared to $124.3B in Q2 2025. This growth was accompanied by gross profit rising even faster at 18.8% YoY to $69.2B, indicating improving profitability alongside top-line expansion.
Apple's financial health remains strong overall, with $45.3B in cash (+49.6% YoY), operating cash flow of $53.9B, and stockholders' equity of $88.2B (+32.1% YoY). However, the current ratio of 0.97 and a debt-to-equity ratio of 3.30 indicate Apple carries significant leverage and its short-term liabilities modestly exceed current assets, risks offset by its exceptional cash generation.
Based on the financial data, key risks include a current ratio below 1.0 (0.97), a high debt-to-equity ratio of 3.30 with $88.5B in long-term debt, and R&D spending growing at 31.7% YoY — nearly double the revenue growth rate — which creates execution risk if these investments do not yield commercial returns. No filing text sections were available to identify additional management-disclosed risk factors.