AAPL's Services hit a record $30.98B in fiscal Q2'26 as TV+, sports and ads grow, with Apple Maps search ads coming later this year.
The biggest company on earth is changing drivers. After ushering Apple (NASDAQ:AAPL | AAPL Price Prediction) from roughly $400 billion to $4.535 trillion in market value, Tim Cook is stepping down, and the successor is hardware chief John Ternus.
Apple Inc.'s Services revenue climbed 16.3% YoY to $30.98 billion while generating extraordinary 76.7% gross margins during Q2-FY26. AAPL produced $140.2 billion in trailing cash flow and approved another massive $100 billion stock repurchase authorization. Gross margin expanded to 49.3% as high-margin Services revenue increasingly offset weaker profitability across Apple's hardware product segment.
Apple could be on the verge of a big development in the consumer AI race.
H1 FY2026 iPhone revenue growth of 22.7% was driven by higher ARPU, mainly from increased memory upgrades and premium model mix. We expect ARPU growth to moderate due to aggressive pricing competition, with short-term support from rising storage needs and potential price hikes. Apple's long-term competitiveness is underpinned by strong branding and AI integration, though feature and performance rankings have declined.
Since ChatGPT burst onto the scene in late November 2022, artificial intelligence has transformed from a buzzword into one of the biggest capital allocation shifts in corporate history.
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Zacks.com users have recently been watching Apple (AAPL) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
After missing out on the initial stages of the artificial intelligence (AI) boom, Apple (NASDAQ: AAPL) is, in 2026, especially well-positioned to benefit from ‘an agentic world,' per the Bank of America (NYSE: BAC) analyst Wamsi Mohan.
Nvidia is driving a paradigm shift by restructuring its revenue reporting to emphasize its AI platform capabilities over its GPU hardware roots. Despite delivering robust revenue growth, record gross margins, and increased capital returns, Nvidia shares remain pressured by muted earnings surprises and China-related headwinds. I see strong parallels to Apple's 2018 transition, suggesting that initial investor skepticism around Nvidia's new reporting structure may fade as the market adapts.
June 18 looks, at first glance, like just another date on the retail calendar. For Apple investors, it may matter more than that.
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