Apple Q2 Revenue Tops $98bn As Services Hit All-Time High And Vision Pro Sales Widen

Apple's fiscal second-quarter results came in materially ahead of analyst expectations, with revenue of $98.4 billion up 6% year-on-year, the Services segment posting an all-time-high quarter at $26.1 billion, and the Vision Pro contribution moving from a curiosity in the prior year's print to a measurable line in the current quarter.

Services were the strategic standout. The category has now compounded at a high-teens annualised rate for nearly four years, and the mix has shifted decisively from the legacy iTunes-and-iCloud baseline toward a richer combination of App Store, Apple Music, Apple TV+, and the financial-services partnerships. The recurring-revenue characteristic of the segment supports the wider valuation framework Apple has been building for two cycles, and the gross-margin profile of Services — at roughly 75% — continues to lift the consolidated gross margin meaningfully.

Vision Pro is the more interesting component of the quarter at the strategic level. The second-generation device, launched in late 2025 at a sharper price point and with a meaningful weight reduction, has now found a customer base that is visibly larger than the first-generation devotees. Tim Cook flagged on the earnings call that enterprise adoption — particularly in design, healthcare imaging, and frontline operations — has been the surprise of the cycle, and the company has begun to ship configured-for-enterprise SKUs that did not exist in the original launch SKU mix.

iPhone revenue grew low-single-digit, with the iPhone 17 launch cycle continuing to convert at a steady pace. The Greater China softness that has defined the past three quarters narrowed but did not fully resolve — China revenue was down approximately 4% year-on-year, against the company's own internal expectations of broadly flat. The Mac and iPad segments delivered modest growth, with the M5-anchored MacBook Pro line driving most of the upside and the iPad Pro refresh tracking close to plan.

Capital return remained substantial. The board authorised a fresh $110 billion share-repurchase programme alongside a 4% dividend uplift — both at the upper end of the consensus range. For investors, the print confirms the operating cadence that has separated Apple from the wider tech complex through the AI-infrastructure capex cycle. The capital-light profile of Services, the new revenue line in Vision Pro, and the disciplined share-count reduction together support a multi-year framework that the more capex-intensive peers are increasingly under pressure to demonstrate.