Apple stock (AAPL) surged by 6% on Friday following the release of their second-quarter earnings report, which exceeded expectations. The tech giant reported earnings per share (EPS) of $1.53 on revenue of $90.8 billion, beating analyst estimates. The company also announced a new $110 billion share repurchase plan, further boosting investor confidence.
Despite a decline in Greater China revenue, Apple CFO Luca Maestri highlighted growth in mainland China during the quarter. The company’s iPhone revenue decreased from the previous year, but Mac and iPad revenues surpassed expectations. Wearables revenue, which includes products like AirPods and the Apple Watch, fell short of Wall Street estimates.
A standout performer for Apple was its Services revenue, reaching an all-time high of $23.87 billion, exceeding analyst expectations. Looking ahead, the company anticipates single-digit revenue growth in the current quarter, with Services revenues expected to continue growing at a double-digit rate.
Analysts at JPMorgan and Evercore ISI expressed optimism about Apple’s future prospects, citing the upcoming Worldwide Developers Conference (WWDC) in June as a potential catalyst for the stock. CEO Tim Cook emphasized the company’s advantages in the evolving tech landscape, particularly in the realm of generative AI.
As Apple prepares to unveil its latest operating systems and AI strategy at WWDC, investors are eagerly anticipating how the company will leverage these advancements to drive future growth. With a strong earnings report and promising outlook, Apple’s stock is poised for further gains in the coming months.