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Apple (AAPL +4%) is trading higher following an impressive fiscal Q2 (Mar) report, highlighted by strong upside revenue guidance for Q3 (Jun), which appears to be the primary catalyst for today's move. Revenue jumped 16.6% yr/yr to a record $111.18 bln, exceeding the high end of guidance and marking the strongest growth since 4QFY21. EPS topped expectations, delivering a solid upside, though not as large as the prior quarter.

• iPhone revenue surged 21.7% yr/yr to a MarQ record $57.0 bln, ahead of estimates, despite supply constraints, driven by strong demand for the iPhone 17 lineup.
• Services revenue rose 16.0% yr/yr to an all-time high of $31.0 bln, beating Street estimates and showing broad-based strength.
• Mac revenue increased 5.7% yr/yr to $8.4 bln, supported by new product launches, including MacBook Neo, which is seeing tremendous enthusiasm.
• iPad revenue grew 8.0% yr/yr to $6.91 bln, benefiting from strength in newer models and continued customer expansion.
• Wearables revenue climbed 5.0% yr/yr to $7.9 bln, with notable strength in emerging markets.
• Apple guided to robust Q3 (Jun) revenue growth, well above typical seasonality and ahead of expectations.
• The company raised its dividend by 4% and authorized a new $100 bln share repurchase program.
• Supply constraints persisted in iPhone and Mac due to advanced node limitations, with Mac constraints expected to continue into Q3 amid strong demand. As a result, Apple expects higher memory costs in Q3, guiding gross margin to 47.5-48.5%, below Q2's 49.3%.

Briefing.com Analyst Insight:

Apple delivered a standout quarter, but the real story is the much stronger-than-expected Q3 (Jun) guidance, which signals sustained demand momentum despite supply constraints. Notably, iPhone demand remained exceptionally strong, even in the face of supply limitations, underscoring the resilience of Apple's core franchise. The leadership transition to John Ternus introduces a new dynamic, as investors will be looking for a more product-driven innovation cycle, particularly in areas like AI and new form factors. While Apple's execution remains top-tier, questions linger about its pace of innovation and positioning in AI relative to peers. Additionally, supply constraints and rising component costs could pressure margins in the near term. Even so, the strong guidance suggests underlying demand trends remain favorable, which should help support the stock, although valuation remains a key consideration at current levels.