AAPL · 10-Q · 2026Q1 · Full report
Gross Margin Drivers
Apple Inc. · 2026-05-01 · Importance 71 · Surprise 48 · No source text
Total gross margin increased to $54,781 million in Q2 2026 from $44,867 million in Q2 2025, up ~22.1%, and total gross margin percentage rose to 49.3% from 47.1% (a ~2.2 percentage point improvement). Products gross margin increased to $31,029 million in Q2 2026 (products gross margin % 38.7% vs 35.9% a year earlier), driven by product mix and favorable foreign currency, partially offset by higher costs. Services gross margin increased to $23,752 million in Q2 2026 (services gross margin % 76.7% vs 75.7%), reflecting higher Services net sales and a different services mix. Management notes future gross margins may be volatile and face downward pressure from cost and macro factors.
Key facts
- Six months ended March 28, 2026: Total gross margin was $124,012 million compared to $103,142 million for the six months ended March 29, 2025, and total gross margin percentage was 48.6% compared to 47.0%. source
- Three months ended March 28, 2026: Total gross margin was $54,781 million compared to $44,867 million for the three months ended March 29, 2025, and total gross margin percentage was 49.3% compared to 47.1%. source
- Six months ended March 28, 2026: Products gross margin was $77,294 million compared to $63,197 million for the six months ended March 29, 2025, and Products gross margin percentage was 39.9% compared to 37.9%. source
- Three months ended March 28, 2026: Products gross margin was $31,029 million compared to $24,684 million for the three months ended March 29, 2025, and Products gross margin percentage was 38.7% compared to 35.9%. source
- Products gross margin and gross margin percentage increased during the second quarter and first six months of 2026 compared to 2025 primarily due to a different mix of products and strength in foreign currencies relative to the U.S. dollar, partially offset by higher costs. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | positive | realized | +2.8% | Three months ended March 28, 2026: Products gross margin was $31,029 million compared to $24,684 million for the three months ended March… |
| margin | positive | realized | +2.2% | Three months ended March 28, 2026: Total gross margin was $54,781 million compared to $44,867 million for the three months ended March 29,… |
| margin | positive | realized | +2.0% | Six months ended March 28, 2026: Products gross margin was $77,294 million compared to $63,197 million for the six months ended March 29,… |
| margin | positive | realized | +1.6% | Six months ended March 28, 2026: Total gross margin was $124,012 million compared to $103,142 million for the six months ended March 29,… |
| margin | positive | realized | — | Products gross margin and gross margin percentage increased during the second quarter and first six months of 2026 compared to 2025… |