Apple delivers a nearly perfect quarter, with a CEO change and an AI update ahead

Apple on Thursday evening reported a strong quarter to wrap up a busy week of megacap earnings. Clearly, CEO Tim Cook's decision to announce his upcoming departure ahead of the release was a move to ensure that news would not overshadow the incredible results. Revenue in Apple's fiscal 2026 second quarter ended March 31 increased 17% to $111.2 billion, well ahead of the $109.7 billion expected, according to LSEG. Earnings per share jumped 22% to $2.01, ahead of estimates of $1.95, according to LSEG. AAPL 1Y mountain Apple 1 year performance In fact, it was the best March quarter in company history, and Apple stock jumped 4% in after-hours trading to around $282. A close Friday at that level would be just shy of its December record high. Bottom line While Cook will remain at the helm for a bit longer, it's clear that incoming CEO Jon Ternus is set to inherit a very strong hand. Sales came in ahead of expectations for all product categories as well as for the highly profitable services business, where growth accelerated on a sequential basis. Better yet, earnings growth outpaced revenue growth as the company was able to expand profit margins for both products and services to a level above what the Street was looking for. Apple, once again, achieved an all-time high installed base of active devices — over 2.5 billion — across all product categories and geographic segments. …