Q2 FY26 earnings record, services growth, ATH rally
Key Questions
What were Apple's Q2 FY26 earnings results?
Apple reported record Q2 revenue of $111.2B (+17%) and EPS of $2.01 (+22%), exceeding estimates with strong guidance.
How much capital has Apple returned to shareholders?
The company announced a new $100B buyback and has returned $183B over five years through dividends and repurchases.
What is the App Store's recent revenue performance?
App Store Q3 revenue grew 3.7% to $3.2B, supported by $1.3T in billings and $2.2B in fraud blocked via AI and human reviews.
Why did Apple's stock reach a new all-time high?
The ATH rally followed strong earnings, buyback announcement, and optimistic Q3 guidance despite valuation debates.
What AI revenue target has Apple set for services?
Wedbush raised its price target citing a $15B AI services revenue goal as part of broader growth strategy.
What are analysts' views on Apple's valuation?
Opinions are split, with KeyBanc cautioning on 34x P/E stretch while Bernstein ($350 PT) and Oppenheimer remain bullish.
How do buybacks impact Apple's share price?
Buybacks have historically supported price appreciation by reducing share count and signaling confidence in fundamentals.
What services growth factors are tied to valuation questions?
App Store and other services expansion, including potential AI contributions, fuel debate on whether the premium valuation is sustainable.
Q2 $111.2B rev (+17%), $2.01 EPS (+22%), $100B buyback. App Store Q3 +3.7% to $3.2B with $1.3T billings and $2.2B fraud blocked via AI/human reviews. $183B capital returns over five years. Wedbush raises PT citing $15B AI services revenue target. Valuation questions if AI narrative sustains premium despite strong Q3 guidance and buyback. Stock hits new ATH; KeyBanc cautions 34x P/E stretch and memory costs while Bernstein $350 PT and Oppenheimer remain bullish.