Apple Gains on Record Services Revenue, $90 Billion Stock Buyback

Apple (AAPL) shares rose 0.72% after the company reported an all-time high for services revenue and iPhone sales in the first quarter and announced a $90 billion stock buyback.

The most valuable company in the U.S. reported its second-quarter earnings with quarterly revenue of $94.8 billion, down 3% year over year. Earnings came in at $1.52 per share, unchanged from a year ago. Analysts had expected $1.43 per share, while net income of $24.16 billion beat forecasts of $22.62 billion.

Apple’s services segment posted sales of $20.9 billion, up from $19.8 billion a year ago. That helped to offset some of the downturn in product revenues, which came in around $4.5 billion lower. Record iPhone sales of $51.3 billion were one of the highlights in a tough macroeconomic environment.

Apple’s cash flow statement showed an $874 million gain in its investing activities, after a $25.3 billion loss in the same quarter last year. This boosted the company’s second-quarter results as, unlike other tech firms, Apple has not been on a cost-cutting drive, with operating expenses up around $1 billion over the same quarter last year. Apple has also bucked the trend of other tech giants, which have slashed staff numbers.

“We generated strong operating cash flow of $28.6 billion while returning over $23 billion to shareholders during the quarter,” said Apple CFO Luca Maestri. He also announced a 4% increase in the company’s dividend to $0.24 per share, alongside the additional $90 billion in share repurchases. The “buyback king” has repurchased $572 billion of its shares since 2012, compared to its nearest competitor, Alphabet, which spent $178.5 billion on stock buybacks.