Apple Posts 17% Revenue Jump and Cuts Capex as Peers Ramp Up AI Spending

*TL;DR: Apple posted $111.2 billion in Q2 revenue, up 17% YoY, and trimmed capex to $4.3 billion, a stark divergence from peers’ AI‑driven spending.

Context Apple, Amazon, Alphabet, Microsoft and Meta all reported strong quarterly results this week. Four of the five disclosed multi‑hundred‑billion‑dollar capital‑expenditure plans aimed at AI infrastructure. Apple’s report stood out for its revenue acceleration paired with modest spending.

Key Facts - Fiscal Q2 2026 revenue reached $111.2 billion, a 17% year‑over‑year increase; earnings per share rose 22%. - iPhone sales drove the surge, delivering $57 billion in revenue, a 22% jump, and the company called the iPhone 17 its most popular lineup. - Services revenue hit nearly $31 billion, up 16% YoY, expanding its 77% gross margin contribution. - Greater China sales climbed 28% to $20.5 billion, underscoring regional momentum. - Capital expenditures totalled $13 billion for FY2025 and only $4.3 billion in the first half of FY2026, far below the $180‑$200 billion budgets announced by Alphabet, Meta, Microsoft and Amazon. - Apple announced a more personalized Siri will launch later this year, reflecting its AI strategy without building its own hyperscale data centers.

What It Means Apple’s revenue growth outpaced Wall Street’s 10% forecast for the upcoming quarter, suggesting continued demand for its flagship devices and high‑margin services. The services acceleration, driven by a massive installed base of over 2.5 billion devices, provides a buffer against hardware cyclicality and improves free‑cash‑flow generation.

By keeping capex low, Apple preserves cash while competitors pour billions into AI‑focused infrastructure. The company’s partnership with Google on foundation models and incremental AI features like a personalized Siri indicate a “software‑first” AI approach that could deliver comparable user experiences at a fraction of the cost.

Investors will watch Apple’s third‑quarter guidance, expected to show 14‑17% revenue growth, and the rollout of Siri enhancements. The next earnings season will reveal whether Apple can sustain its growth trajectory without matching rivals’ spending sprees.