Apple Q2 FY2026 Earnings: Revenue Up 17% While Capex Stays Low

During the same week, four other Magnificent Seven firms raised their 2026 capex plans, with Alphabet targeting $180‑$190 billion, Meta $125‑$145 billion, Microsoft around $190 billion and Amazon near $200 billion. Apple’s stock ticker AAPL gained 3.26% on the news, lifting its market cap to roughly $3.0 trillion.

- Revenue: $111.2 billion, +17% YoY; EPS rose 22%. - iPhone revenue: $57 billion, +22% YoY, with Greater China up 28% to $20.5 billion. - Services revenue: $31 billion, +16% YoY; gross margin ≈77%, versus ~39% for product sales. - Capital expenditures: $13 billion for FY2025 and $4.3 billion in the first half of FY2026, well below peers’ planned 2026 outlays. - Apple is collaborating with Google on foundation models for Siri and rolling out Apple Intelligence without building its own hyperscale data centers.

The services segment’s high margin amplifies profitability even as product sales grow, providing a buffer against cyclical hardware demand. Low capex preserves free cash flow, giving Apple flexibility for share buybacks, dividends, or selective AI partnerships. By leveraging external AI infrastructure, Apple avoids the large fixed‑cost burden that peers are assuming, potentially sustaining higher returns on invested capital. Watch for Apple’s upcoming product roadmap, including a more personalized Siri later this year and the planned expansion of services monetization such as ads in Apple Maps, which could further lift services revenue while capex remains restrained.