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Apple reported its best March quarter ever, with revenue rising 17% year-over-year to $111.2 billion, driven by record iPhone and Services sales. The company also announced that CEO Tim Cook will transition to the role of executive chairman on September 1, 2026, with hardware engineering head John Ternus succeeding him as CEO.
Facts First
- Revenue of $111.2 billion, a 17% year-over-year increase, exceeding analyst expectations.
- iPhone sales reached a March quarter record of $57.99 billion, a 22% increase, driven by demand for the iPhone 17 lineup.
- Services revenue grew 16.3% to $30.98 billion, setting another all-time record for the segment.
- CEO Tim Cook will become executive chairman on September 1, 2026.
- John Ternus, senior VP of hardware engineering, will become the next CEO on September 1, 2026.
What Happened
Apple reported financial results for the second quarter of its fiscal 2026, ended in March. The company posted revenue of $111.2 billion, a 17% increase from the same period a year earlier. This exceeded the $109.7 billion analysts expected, according to LSEG Data & Analytics. Net income was $29.58 billion, with diluted earnings per share of $2.01, a 22% increase that also beat the expected $1.95 per share.
Sales of the iPhone increased 22% to an all-time high of $57.99 billion for a March quarter. Apple's Services business grew 16.3% to $30.98 billion, another all-time record for the segment and above the $30.4 billion Wall Street expected, according to StreetAccount.
Separately, Apple announced a leadership transition. Tim Cook will step down as CEO on September 1, 2026, and become executive chairman. John Ternus will become Apple's next CEO on the same date.
Why this Matters to You
For customers, Apple's strong performance suggests continued investment in its ecosystem, including services like Apple Music and iCloud and new products like the iPhone 17e, M4-powered iPad Air, and MacBook Neo noted during the quarter. The planned CEO transition appears to be a structured succession, which could signal stability for the company's future product roadmap and strategic direction.
What's Next
The announced leadership change will take effect on September 1, 2026. John Ternus's background in hardware engineering may influence the company's focus on future product development. Apple's next financial report will provide further insight into whether the current growth trends in iPhone and Services continue.