Apple Inc. designs, manufactures, and markets a wide range of consumer electronics, including smartphones, personal computers, tablets, and wearables. The company also provides various related services such as advertising, cloud services, digital content, and payment solutions, operating in the technology and consumer electronics industry.
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Earnings call: Q2 2026 2026
Intel
Free
Apr 29, 2026Confident
● Full transcript on file
Tim Cook (Chief Executive Officer), Luca Maestri (Senior Vice President and Chief Financial Officer), Tejas Gala (Director of Investor Relations and Corporate Finance)
Key metrics
Total revenue was about $111.2 billion, up roughly 17% year-over-year and a March quarter record.[1] Products revenue was approximately $80.2 billion, also up 17% year-over-year, driven by double-digit iPhone growth and a March quarter record for iPhone revenue, which grew about 22% year-over-year.[1] Services revenue was roughly $31 billion, up 16
Forward guidance
Management guided for continued year-over-year revenue growth in the June quarter, with particular strength expected in Services and iPhone, while acknowledging some ongoing supply constraints and foreign-exchange variability.[1] They indicated gross margin would remain supported by favorable product mix and lower tariff costs, partially offset by
Notable Q&A
In one exchange, an analyst asked about the sustainability of strong iPhone demand and whether recent growth was primarily replacement-driven or coming from switchers in markets like China; management responded that both upgrade and switcher activity were robust, with iPhone the top-selling model in
Surprise items
Revenue and iPhone performance came in above the high end of guidance despite acknowledged supply constraints, indicating stronger-than-expected demand.[1] Management highlighted particularly strong Greater China results, with both the March quarter and first-half revenue reaching records, which may
Q1 2026 (Jan 29, 2026) · Confident
Fundamentals
Signal
52-week high / low
$323.45 / $201.50
Forward P/E
32.8×
Trailing 38.4×
Dividend
$1.08 / share
Yield 0.34%
Analysts covering
42
Avg target $316.76
Beta
1.10
vs. S&P 500
Short interest
1.0%
Float shorted
Buy
60%
Hold
36%
Sell
4%
Wall Street consensus — sourced weekly via public disclosures
Analyst coverage data sourced from public filings. Xavier analyst thesis summary available after weekly Perplexity scan completes.
Financial summary — Gemini analysis
Signal
Revenue
$416,161 million
6.4% YoY
Operating margin
32.0%
Net income
$112,010 million
Free cash flow
$98,767 million
Dividend / share
$1.02
Total debt
$98,657 million
Cash: $35,934 million
Earnings quality:HIGH
Recurring revenue:26%
Cash conversion:1.0x
Non-recurring items: One-time income tax charge of $10.2 billion, net, related to the European Commission State Aid Decision
Confidence 6.3 / 10 · 100% model agreement ·
Scheduled Jun 07, 2026
AAPL enters the WWDC week (June 8-12) as a classic binary event stock: a credible Siri 2.0/Gemini AI reveal could justify the 37x TTM multiple and sustain the recent run toward all-time highs, but at $307 with the analyst consensus target at $310.51 and the stock within 3% of its 52-week high, there is virtually no margin of safety for a disappointment. The risk/reward is roughly symmetrical over the next 5 trading days, making a directional bet unattractive at current prices.
Strongest bull case
WWDC June 8 keynote is a live catalyst: a credible Siri 2.0 powered by Google Gemini (1.2T parameter model) could trigger a narrative re-rating similar to WWDC 2024's 20-point outperformance, while Q2 FY26 fundamentals are genuinely strong — 17% revenue growth, iPhone up 22%, Services a record $31B with 75%+ gross margins, and a $100B buyback providing structural EPS support.
Strongest bear case
At 37x TTM and 32x forward earnings with the stock sitting within 3% of its all-time high and analyst consensus target nearly at current price ($310.51 vs. $307.34), there is zero valuation cushion: a WWDC AI disappointment — Apple's second consecutive miss on Siri promises — would reprice the multiple sharply lower, and management already guided Q3 gross margin down to 47.5-48.5% from 49.3% citing rising memory costs, compressing near-term earnings power.
What the market may be missing
The market is treating WWDC as a pure upside lottery ticket, but the asymmetry may actually favor the downside: Apple has spent two years promising a transformative AI Siri and repeatedly delayed; expectations are now baked in at the $307 price level after a 50%+ 12-month run, meaning 'good but not great' is a sell catalyst. Additionally, the CEO succession overhang (Tim Cook stepping down) is underappreciated as an institutional risk factor that could dampen post-WWDC multiple expansion even on a positive announcement.
Tim Cook announced his stepping down as CEO of Apple after 11 years, transitioning to the role of executive chairman. John Ternus was named as the new CEO. The discussion highlighted Cook's consequential impact on making Apple a $3 trillion company t
CEO letter to shareholders
Signal
No shareholder letter on file for AAPL
Some companies file their annual report without a separate CEO letter.
When available, Xavier extracts strategic themes, tone analysis, and
forward-looking statements to help you read between the lines.
Executive compensation
Signal
Name
Title
Total compensation
Tim Cook
Chief Executive Officer
$74,294,811
Kevan Parekh
Senior Vice President, Chief Financial Officer
$22,467,309
Kate Adams
Senior Vice President, General Counsel and Secretary
$27,032,248
Sabih Khan
Senior Vice President, Chief Operating Officer
$27,031,671
Luca Maestri
Former Senior Vice President, Chief Financial Officer
$15,482,928
Deirdre O’Brien
Senior Vice President, Retail + People
$27,047,633
Source: DEF 14A proxy statement · 2026-01-08
Governance
Pro
Dual-class shares:No
Poison pill:No
Clawback policy:Yes
Stock ownership req.:Yes
Shareholder proposals
China Entanglement Audit
AGAINST
Pending
Debt intelligence
Pro
0.85x
Debt / Equity
0.3x
Net Debt / EBITDA
$45.4B
Net debt
25%
Debt / Assets
Xavier risk radar
Pro
Covenant headroom
Low leverage — no covenants required
Earnings quality
High quality (cash conversion 1.0x)
Risk trend
Risk increasing — Global macroeconomic conditions, including inflation, interest rates, currency f
Mgmt narrative
Management tone: Cautious
Analyst drift
Consensus Buy — targets stable
Insider sentiment
Pattern detection — 90 days needed
Signal history
Signal
Date
Direction
Conf.
Agree.
Thesis
Price
Type
Jun 07, 2026
NEUTRAL
6.3/10
100%
AAPL enters the WWDC week (June 8-12) as a classic binary event stock: a credible Siri 2.0/Gemini AI...
$307.34
Sched.
May 31, 2026
NEUTRAL
6.3/10
100%
AAPL trades at a 37.7x TTM P/E — expensive by any standard — with revenue growth of just 0.17% and e...
$312.06
Sched.
May 24, 2026
NEUTRAL
6.0/10
100%
AAPL at $308.82 is trading within 1% of its 52-week high and essentially at the consensus analyst pr...
$308.82
Sched.
May 17, 2026
NEUTRAL
6.5/10
75%
AAPL is trading within 1% of its 52-week high at a P/E of 36.4x on revenue growth of just 0.17% (TTM...
$300.23
Sched.
May 10, 2026
NEUTRAL
6.9/10
33%
AAPL has strong tape support and benefits from a bullish macro backdrop, but the stock is trading ne...
$293.32
Sched.
May 03, 2026
NEUTRAL
6.4/10
100%
AAPL delivered a genuine Q2 2026 beat — 17% revenue growth, 22% iPhone surge, $100B buyback — and th...
$280.14
Sched.
Apr 12, 2026
NEUTRAL
6.3/10
50%
AAPL is in a pre-earnings holding pattern heading into its Q2 FY2026 report on April 30, where manag...
$260.48
Sched.
Showing last 7 signals
AAPLApple Inc.
Signal
FY2026 annual report (10-K filed 2025-10-31)
INCOME STATEMENT
?Revenue
$416,161 million6.4% YoY
Total sales from software licenses, cloud services, hardware, and subscriptions. Up 6.4% from last year.
?Operating income
$133,050 million
What remains after subtracting all operating costs — salaries, materials, rent, R&D — from revenue. This is the profit from actually running the business, before interest and taxes. Operating margin is 32.0%, meaning 32 cents of every dollar of revenue becomes operating profit.
?Net income
$112,010 million
The bottom line — what the company actually earned after all expenses, interest, and taxes. This is the number that gets divided by shares outstanding to calculate earnings per share (EPS), which directly affects the stock price. Net margin is 26.6%. Note: results include non-recurring items (one-time income tax charge of $10.2 billion, net, related to the european commission state aid decision) that may not repeat.
?Free cash flow
$98,767 million
Operating cash flow minus capital expenditure. This is the money available for dividends, share buybacks, debt repayment, or acquisitions. Free cash flow is what many professional investors consider the truest measure of financial health.
?EPS (diluted)
$2.01
Earnings per share — net income divided by total shares outstanding (including stock options and convertible bonds that could become shares). This is the single number most investors watch because it directly connects company profits to your ownership stake.
?Dividend per share
$1.02
Cash paid to shareholders each year for every share they own. Tech dividends vary — mature companies like Apple and Microsoft pay growing dividends while growth companies reinvest.
BALANCE SHEET
?Total assets
$371.1B
Everything the company owns — cash, factories, equipment, patents, inventory, investments. Includes intellectual property, data centers, patents, and acquired technology.
?Cash & equivalents
$35,934 million
Money available right now — bank accounts, money market funds, short-term government bonds. This is the company's financial cushion. More cash means more flexibility to invest, acquire, or survive a downturn without borrowing.
?Total debt
$98,657 million
All money the company owes — bonds, bank loans, credit facilities. Compare this to cash to understand the net debt position. The company holds $35,934 million in cash against this debt.
?Shares outstanding
15,004,697 thousand
Total number of shares that exist — owned by all investors, insiders, and institutions combined. When the company reports EPS, this is the denominator. Share buybacks reduce this number, which increases EPS even without earnings growth.
?Debt-to-equity ratio
0.9%
How much debt the company uses for every dollar of shareholder equity. Under 100% means more equity than debt (conservative). Over 200% means heavy leverage. Banks and utilities naturally run higher ratios.
CASH FLOW
?Operating cash flow
$82.6B
Actual cash generated from running the business — not accounting profits, real money coming in the door. This is more trustworthy than net income because it's harder to manipulate. A company can report profits but still run out of cash.
?Capital expenditure
$4.3B
Money spent on long-term assets — data centers, server infrastructure, and R&D facilities. This is the cost of maintaining and growing the business.
?Free cash flow
$78.3B
Operating cash flow minus capital expenditure. This is the money available for dividends, share buybacks, debt repayment, or acquisitions. Free cash flow is what many professional investors consider the truest measure of a company's financial health.
?Depreciation & amortization
$6.7B
A non-cash expense that spreads the cost of servers, data center equipment, and acquired technology over their useful life. This reduces reported income but no cash actually leaves the company — that's why it gets added back to calculate EBITDA and operating cash flow.
EARNINGS QUALITY
?Accrual quality
HIGH
Measures how well reported earnings match actual cash generation. HIGH means earnings are backed by real cash. LOW means the company may be using accounting techniques to inflate reported numbers. Professional investors check this before trusting EPS.
?Recurring revenue
26%
26% of revenue comes from repeat sources — ongoing contracts, subscriptions, or regular customer purchasing patterns rather than one-time sales. Higher recurring revenue means more predictable future earnings.
?Cash conversion
1.0x
Operating cash flow divided by net income. Above 1.0x means the company generates more cash than it reports in profits — a sign of high-quality earnings. At 1.0x, the company is generating less cash than reported profits — investigate why.
?Non-recurring items
1 identified
One-time items that affect the bottom line but won't repeat: one-time income tax charge of $10.2 billion, net, related to the european commission state aid decision. When evaluating the company's true earning power, investors strip these out to see what the business earns on a normal basis.
?Management tone
Cautious
How management sounds in their SEC filings — are they confident, cautious, or defensive? This is analyzed from the actual language used in the 10-K annual report. A shift in tone from prior years can signal changing conditions before the numbers reflect it.
?Top risk factor
Increasing
Global macroeconomic conditions, including inflation, interest rates, currency fluctuations, and geopolitical events and trade disputes, significantly impact operations and performance. Risk trend: increasing. This is the single biggest threat to the company's future earnings as identified in their SEC filing.
Click any row to expand the plain-English explanation. Source: SEC EDGAR XBRL filings.
Capital intelligence
Signal
Weighted Average Cost of Capital · Return on Invested Capital · Economic Value Added
ROIC
80.06%
WACC
10.09%
🟢 VALUE CREATOR — EVA Spread: 69.98%
?WACC
10.09%
Weighted Average Cost of Capital — the minimum return Apple Inc. must earn on its investments to satisfy both debt holders and shareholders. Computed from a 98.07% equity / 1.93% debt capital structure. If the company earns less than 10.09% on its invested capital, it is destroying shareholder value.
?Cost of equity
10.28%
The return shareholders demand for holding AAPL stock instead of a risk-free Treasury bond. Computed using the Capital Asset Pricing Model: Risk-Free Rate (4.25%) + Beta (1.10) × Equity Risk Premium (5.50%). A beta of 1.10 means AAPL is more volatile than the overall market.
?Cost of debt (after-tax)
0.05%
What Apple Inc. effectively pays on its borrowed money after the tax deduction on interest. Interest is tax-deductible, so the true cost is lower than the stated rate. Effective tax rate used: 17.46%.
?Capital structure
E: 98.07% / D: 1.93%
How Apple Inc. finances its operations — the split between equity (stock market value: $4.62T) and debt (total borrowings: $91.0B). More debt means more leverage — higher potential returns but higher risk.
?ROIC
80.06%
Return on Invested Capital — how efficiently Apple Inc. turns its total invested capital into after-tax operating profit. NOPAT ($121.6B) ÷ Invested Capital ($151.9B). This exceeds WACC, meaning the company creates value for shareholders.
?EVA
$106.3B
Economic Value Added — the dollar amount of value Apple Inc. created (or destroyed) above its cost of capital. NOPAT ($121.6B) minus the capital charge (Invested Capital × WACC = $15.3B). Positive EVA means every dollar of capital is earning more than it costs.
?NOPAT
$121.6B
Net Operating Profit After Tax — operating income adjusted for taxes, ignoring how the company is financed. Operating Income ($147.4B) × (1 - Tax Rate 17.46%). This isolates the company's core business profitability from its financing decisions.
Xavier consensus signals are intelligence outputs, not investment advice. All signals are generated by a multi-model AI system and reflect public information at time of generation. Past signal accuracy does not guarantee future performance. Wall Street analyst consensus sourced from public disclosures, summarized weekly. Financial data sourced from SEC EDGAR and yfinance. Insider transactions sourced from SEC EDGAR Form 4 filings. Updated Jun 07, 2026.