Apple Inc. (AAPL) reported fiscal second-quarter results after the bell Thursday, beating Wall Street consensus on both the top and bottom line and unveiling a $130 billion incremental share-buyback authorization that pushes lifetime repurchases past the $880 billion mark. Adjusted earnings per share came in at $1.71 versus the $1.62 consensus, and revenue of $98.2 billion topped the $96.4 billion estimate. The stock jumped 3.8% in after-hours trading to $223.05.
iPhone revenue of $54.1 billion outpaced the $52.4 billion forecast, supported by a record 41.6% mix of iPhone 17 Pro Max units that pushed average selling prices to an all-time high of $1,062. Services revenue hit $27.4 billion, up 16.3% year-on-year, with operating margin expanding 80 basis points to 77.3% on accelerating App Store and Search advertising mix.
Capital Return and Dividend
The board authorized a $130 billion incremental buyback — the largest single authorization in U.S. corporate history — and raised the quarterly dividend by 5% to $0.27 per share, the 13th consecutive annual increase. Treasurer Luca Maestri told analysts on the post-print call the company expects to return "essentially all" free cash flow to shareholders, with $96 billion of net cash on the balance sheet at quarter-end.
Apple Intelligence and China
CEO Tim Cook said Apple Intelligence is now active on more than 480 million devices globally — a 38% sequential increase — with the on-device AI rolling out in 31 languages following the late-March localization push. Greater China revenue surprised positively at $17.1 billion, up 4.3% year-on-year, reversing six consecutive quarters of decline as Pro Max share in mainland China hit a record 39.4%.
Outlook
For the fiscal third quarter, Maestri guided to "low double-digit" Services growth and "mid-single-digit" total company revenue growth, modestly above consensus. Wedbush analyst Daniel Ives raised his price target to $300 from $275 and called the print "the cleanest quarter since the iPhone 6 cycle." Morgan Stanley's Erik Woodring lifted his target to $280 from $260 with Overweight. The S&P 500 e-mini contract added 0.4% in extended trade as