Key Points
Apple, with over 2.5 billion active devices, saw a 21.7% increase in iPhone revenue year-over-year, totaling $57 billion in Q2 2026. Despite the ongoing AI investment frenzy among major tech firms planning approximately $700 billion in capital expenditures for the year, Apple’s capital expenditures remain modest at $4.3 billion in the last two quarters. This conservative financial strategy has resulted in a significant free cash flow (FCF) of $78.3 billion, up 63% year-over-year, representing 30.7% of its total revenue.
CEO Tim Cook attributed Apple’s distribution advantage to its extensive installed base, positioning the company to capitalize on new AI features regardless of external competition. Analyst estimates predict a compound annual growth rate of 19.1% for FCF from fiscal 2025 to fiscal 2028.
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