Apple (AAPL) reported strong second-quarter earnings for fiscal 2026, with earnings per share of $2.01 exceeding Wall Street expectations by $0.06 and revenue surpassing $111 billion by over $1.5 billion. Despite a nearly 4% rise in after-hours trading, the company fell short on iPhone revenue, which reached nearly $57 billion, slightly below estimates. This comes amid a backdrop where peers like Microsoft and Amazon are ramping up capital expenditures to enhance their AI capabilities.
While competitors in the “Magnificent Seven” are investing heavily in AI infrastructure, Apple is sticking to its shareholder-friendly strategy, announcing a 4% dividend increase to $0.27 per share and a $100 billion share repurchase program. Already, Apple has repurchased nearly $37 billion in stock this fiscal year, contrasting with its peers who have paused buybacks to fund their capital projects. This approach positions Apple as a stable investment for those wary of the risks associated with heavy AI spending.
Investors may view Apple as a solid choice for exposure to a leading tech company with a proven track record of shareholder returns, especially as it navigates the evolving landscape of AI without overextending its capital.
Source: fool.com