The Short Version
Apple just posted its best Q2 ever: $111.2 billion in revenue (up 17% YoY). Apple Watch continues to drive wearables growth, more than half of Apple Watch buyers are new to the product, and iOS 26.4 brought key Health app improvements with bigger changes coming in iOS 27.
Apple Q2 2026 By the Numbers
| Metric | Q2 2026 | vs. Last Year |
|---|---|---|
| Total Revenue | $111.2 billion | +17% |
| iPhone Revenue | $57 billion | +22% |
| Wearables Revenue | $7.9 billion | +5% |
| Services Revenue | $31 billion | +16% (record) |
Every product category and geographic segment saw double-digit growth. Apple's installed base of active devices hit an all-time high of over 2.5 billion devices.
Apple Watch: Half of Buyers Are New
The wearables numbers stood out: Apple's "wearables, home, and accessories" category brought in $7.9 billion, up 5% year-over-year. But the real story is the customer acquisition.
"More than half of customers who purchased an Apple Watch during the quarter were new to the product."
That's a significant statement about Apple Watch's continued ability to attract first-time buyers - not just upgrading existing customers.
Apple Watch Ultra 3, Apple Watch Series 11, and Apple Watch SE all continue to "play an essential role in users' lives, going far beyond fitness tracking to deliver meaningful health insights," according to the earnings call.
Services Hit $31 Billion - A New Record
Apple's Services segment (App Store, Apple Music, Apple TV+, iCloud, Apple Fitness+, etc.) hit $31 billion in revenue - a new all-time record and up 16% year-over-year.
Key points:
- Both transacting and paid accounts hit new all-time highs
- Apple's services ecosystem now spans 2.5+ billion active devices
- Services gross margin continues to be ~70%, far outpacing hardware
This Services growth matters for Apple Watch too - Apple Fitness+ is a key differentiator that keeps users locked into the Apple ecosystem.
iOS 26.4 Health App: Two Key Improvements
On the software side, iOS 26.4 (released late March 2026) brought two notable improvements to Apple's Health app:
1. Bedtime Consistency Tracking
The Sleep screen now includes a bedtime highlight showing your recent sleep schedule. You can see:
- Bar chart visualization of the last two weeks of bedtimes
- Average bedtime metric
- Last night's bedtime
This helps users understand their sleep consistency - a factor that affects sleep quality more than total hours.
2. Blood Oxygen Returns to Vitals
Blood Oxygen tracking returned to the Vitals screen in iOS 26.4. Apple removed blood oxygen sensing from Apple Watch in early 2024 due to a patent dispute with Masimo, then relaunched it later that year - but the data wasn't showing up in the Vitals dashboard until now.
The Vitals screen now tracks five metrics:
- Heart rate
- Respiratory rate
- Wrist temperature
- Blood oxygen
- Sleep duration
What's Coming: iOS 27 Health Upgrades
Apple is clearly not done with Health. According to multiple reports:
- Nutrition logging is coming to the Health app - Siri will be able to scan nutrition labels via the Camera app and log dietary information
- AI health coaching features are in development (though details are sparse)
- Educational video content from health experts is rumored
Apple will unveil iOS 27 at WWDC on June 8, 2026, so we'll know exactly what's coming within weeks.
What This Means for Apple Watch Users
Apple's continued investment in Health app features reinforces that Apple Watch is a health device first, fitness tracker second. The quarterly earnings prove the strategy is working:
- Apple Watch is still attracting new customers at a strong rate
- Services revenue creates an ecosystem lock-in that competitors can't easily match
- Software features (Sleep Score, Vitals, Health app improvements) add value without requiring hardware upgrades
For Garmin and other fitness-focused competitors, the takeaway is clear: Apple is playing a different game. They're not racing to add more sport modes or GPS accuracy - they're focused on health insights, ecosystem, and the services recurring revenue model.