Apple Q2 Earnings Beat Estimates, Services Revenue Surges Amid CEO Transition

Apple reported earnings and revenue for its fiscal second quarter that topped analysts' estimates, driven by growth in the company's services business. Sales for iPhones missed estimates for the second time in three quarters, the only significant number that came up short of expectations in Thursday's report. Here's how the company did compared to analyst estimates, according to LSEG consensus. EPS: $2.01 vs. $1.95 Revenue: $111.18 vs. $109.66 billion Wall Street is also looking at these key areas: iPhone revenue: $56.99 billion vs $57.21 billion expected Mac revenue: $8.4 billion vs. $8.02 billion expected iPad revenue: $6.91 billion vs. $6.66 billion expected Wearables, Home and Accessories revenue: $7.9 billion vs. $7.7 billion expected Services revenue: $30.98 billion vs. $30.39 billion expected Gross margin: 49.3% vs. 48.4% Revenue climbed 17% from $95.4 billion a year earlier, Apple said. The results mark the first time the company is facing Wall Street since the announcement last week that Tim Cook will be stepping down as CEO after 15 years on the job. In March, Apple announced a number of new products, including its iPhone 17e, a refreshed iPad Air laptop with an M4 chip in 11-inch and 13-inch sizes. The biggest surprise was the MacBook Neo, a low-cost laptop priced at $599 and aimed at students and budget-conscious consumers. Sales of iPhones rose 22% in the quarter from a year earlier. While device sales are always key to Apple's results, top of mind for Wall Street is what to expect from incoming CEO John Ternus. Apple announced on April 20, that Ternus is succeeding Cook, who will become executive chairman on Sept. 1. Ternus is a longtime Apple exec who's been running hardware. One of the first things Ternus has to figure out is where Apple is going to go with artificial intelligence. Early in the quarter, Apple announced it would partner with Google to use its Gemini AI model to power its Siri product.