The news: Apple enjoyed its “best March quarter ever” in fiscal Q2 2026, CEO Tim Cook said, with revenues totaling $111.2 billion. In his last full quarter as CEO, Cook cited “extraordinary demand” for the iPhone 17 and an all-time revenue record for its Services category, which includes the company’s advertising and streaming business.

By the numbers:

• Total revenues: $111.2 billion, +17% YoY and above analyst expectations of $102 billion
• Diluted EPS: $2.01, +21.8% YoY
• Services revenues: $14.27 billion, +9.4% YoY
• iPhone revenues: $56.99 billion, +21.67% YoY

Zooming in: Apple has long obscured its advertising revenues by bundling them with other services, despite its clear and aggressive push into the sector in recent years. Its Services category includes advertising, streaming, subscription services like Apple Arcade, and Apple Pay, making it hard to isolate ad performance.

Still, Services is now one of Apple’s two largest revenue segments, second only to the iPhone, suggesting its advertising business is driving meaningful growth. We forecast the company will bring in $8.85 billion in US ad revenues this year, growing to $11.06 billion by 2030. Apple recently expanded ad space in Apple Maps and launched Apple Business, which bundles its advertising offerings with other enterprise features.

Implications for marketers: As one of the few Big Tech companies without an AI-heavy balance sheet, Apple’s advertising business isn’t under the same financial pressure as competitors to deliver revenues. But elevated chip costs could pressure its high-performing hardware business, which could be passed along to advertising or other sectors if hardware sales slow.

Apple is quietly growing its advertising offerings, though in a less flashy manner than its AI-focused competitors. The company’s enormous install base of billions of iOS users leaves it with substantial levers to pull if it wants to further expand its advertising—and Services—category.