AAPL · 10-Q · 2026Q1 · Full report
Services Growth and Mix
Apple Inc. · 2026-05-01 · Importance 74 · Surprise 58 · No source text
Services net sales rose to $30,976 million in Q2 2026 from $26,645 million a year earlier, an increase greater than 10% YoY, driven primarily by advertising, the App Store and cloud services. The filing cites higher services revenue as a contributor to improved services gross margin and overall gross margin percentage. Management attributes part of the services margin improvement to a different mix of services and favorable foreign currency impacts. Services strength is referenced as a cross-product revenue stream supporting total company performance.
Key facts
- Six months ended March 28, 2026: Services net sales were $60,989 million compared to $52,985 million for the six months ended March 29, 2025. source
- Six months ended March 28, 2026: Services gross margin was $46,718 million compared to $39,945 million for the six months ended March 29, 2025, and Services gross margin percentage was 76.6% compared to 75.4%. source
- Three months ended March 28, 2026: Services net sales were $30,976 million compared to $26,645 million for the three months ended March 29, 2025. source
- Three months ended March 28, 2026: Services gross margin was $23,752 million compared to $20,183 million for the three months ended March 29, 2025, and Services gross margin percentage was 76.7% compared to 75.7%. source
- Services net sales increased during the second quarter and first six months of 2026 compared to 2025 primarily due to higher net sales from advertising, the App Store and cloud services. source
- Services gross margin percentage increased during the second quarter and first six months of 2026 compared to 2025 primarily due to a different mix of services and strength in foreign currencies relative to the U.S. dollar, partially offset by higher costs. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +7.2% | Six months ended March 28, 2026: Services net sales were $60,989 million compared to $52,985 million for the six months ended March 29,… |
| revenue | positive | realized | +3.9% | Three months ended March 28, 2026: Services net sales were $30,976 million compared to $26,645 million for the three months ended March… |
| margin | positive | realized | +1.2% | Six months ended March 28, 2026: Services gross margin was $46,718 million compared to $39,945 million for the six months ended March 29,… |
| margin | positive | realized | +1.0% | Three months ended March 28, 2026: Services gross margin was $23,752 million compared to $20,183 million for the three months ended March… |
| revenue | positive | realized | — | Services net sales increased during the second quarter and first six months of 2026 compared to 2025 primarily due to higher net sales… |
| margin | positive | realized | — | Services gross margin percentage increased during the second quarter and first six months of 2026 compared to 2025 primarily due to a… |