Apple Inc. announced Thursday a groundbreaking $110 billion share buyback program, the largest in the company's history, alongside its second-quarter financial results that surpassed Wall Street's low expectations.
The news propelled Apple's stock up by nearly 7% in extended trade, showcasing investor enthusiasm for the tech giant's strategic moves, Reuters reported.
Apple's Fiscal Q2 Revenue
Apple's fiscal second-quarter revenue stood at $90.8 billion, a 4% decline from the previous year but still beating analyst estimates of $90.01 billion, according to GuruFocus Research.
The company's earnings per share (EPS) also outperformed, reaching $1.53 compared to the estimated $1.50, according to LSEG data.
Despite challenges such as a 10% drop in iPhone sales and increased regulatory scrutiny, Apple managed to navigate the market effectively.
Apple's Strategic Share Buyback
The $110 billion buyback authorization underscores Apple's commitment to returning value to its shareholders and confidence in its long-term growth prospects.
"We continue to feel very bullish about our opportunity in generative AI and we're making significant investments," CEO Tim Cook said, as reported by Reuters.
This move comes amid a competitive landscape and ongoing challenges in key markets like China. Huawei's smartphone sales have already outpaced Apple's iPhone sales in the first quarter of 2024.
Despite this, Apple remains optimistic about its future performance, with expectations of low-single-digit revenue growth in the current quarter.
Additionally, the company's services segment, including Apple Music and TV offerings, recorded robust growth, signaling diversification beyond hardware sales.
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