Apple Inc. surpassed Wall Street expectations for its fiscal second quarter, fueled by sustained momentum in iPhone sales and growth in its services segment. The company reported earnings per share of $1.52 on revenue of $94.8 billion, exceeding analyst estimates of $1.43 EPS on $92.9 billion in revenue.
Strong iPhone Performance
iPhone revenue reached $51.3 billion, up 3% year-over-year, defying concerns about a slowdown in smartphone demand. Analysts had projected iPhone sales of around $50 billion. The performance was bolstered by strong demand for the iPhone 16 lineup, particularly in emerging markets like India and Southeast Asia.
Services and Wearables Growth
Apple's services segment, which includes the App Store, Apple Music, and iCloud, posted revenue of $23.9 billion, a 14% increase from the prior year. Wearables, home, and accessories revenue came in at $8.2 billion, slightly below expectations but still showing resilience.
CEO Tim Cook highlighted the company's record high installed base of active devices, which surpassed 2.2 billion. "We are thrilled to report our best March quarter ever, driven by strong customer response to our products and services," Cook said in a statement.
Outlook and Share Buybacks
Apple's board authorized an additional $90 billion in share repurchases and raised the quarterly dividend by 4% to $0.25 per share. For the current quarter, Apple expects revenue growth in the low single digits, with services growth accelerating.
The results come amid a challenging macroeconomic environment, with persistent inflation and geopolitical tensions. However, Apple's ability to navigate supply chain disruptions and maintain pricing power has reassured investors.
Shares of Apple rose over 2% in after-hours trading following the earnings release. The stock has gained about 15% year-to-date, outperforming the broader market.
