Apple Inc. saw its stock rise by as much as 6% following the announcement of its Q2 results and a new $110 billion share repurchase plan. The tech giant reported earnings that surpassed forecasts and sales that declined less than anticipated.
For Q2, Apple reported earnings per share (EPS) of $1.53 on revenue of $90.8 billion, beating Wall Street’s anticipated EPS of $1.50 on revenue of $90.3 billion. Despite a year-over-year slide of 8% in Apple’s Greater China revenue to $16.37 billion, the figures were better than the expected $15.87 billion. Apple CFO Luca Maestri revealed that the company experienced growth in mainland China during the quarter.
iPhone revenue for the quarter totaled $45.96 billion, down from $51.33 billion in Q2 of the previous year. Despite this, Apple announced an additional $110 billion authorization for share repurchases and increased its dividend to $0.25 per share.
The company’s services revenue hit an all-time high of $23.87 billion, up from $20.91 billion last year, surpassing the expected $23.28 billion. For the current quarter, Apple expects revenue growth in the low single digits and double-digit growth in services revenues.
Analysts at JPMorgan maintained their Overweight rating on the stock and raised their price target to $225 per share from $210 following these results. The company is also preparing for its Worldwide Developers Conference (WWDC) in June, where it is expected to reveal how it will integrate generative AI into its various products.
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