Apple’s Q2 earnings show flat year-over-year revenue growth due to pandemic

Apple delivered a rough Q2 earnings report Thursday, besting investor expectations but showing a significant growth slowdown as the coronavirus pandemic deeply impacted the company’s business with year-over-year declines in iPhone, iPad and Mac sales.

Apple’s stock was largely unchanged in after-hours trading.

The company shared that in Q2 it earned $58.30 billion in revenue, better than the $54.54 billion investors were expecting. The figure represents 1% year-over-year revenue growth for the company.

In February, the company issued an update to its Q2 guidance, saying that it did not expect to meet its earlier estimates due to fallout driven by the COVID-19 pandemic. The company did not update its previous guidance, which said they expected to earn between $63 billion to $67 billion in Q2. Apple notably did not offer guidance for Q3 in this release.

In terms of earnings per share, the company delivered $2.55 compared to the $2.26 investors had expected. Apple also shared that they were increasing their share buyback program by $50 billion and would be hiking dividends by 6%.

Apple saw year-over-year declines in its iPhone, iPad and Mac categories, only showing gains in Services and its “Wearables, Home and Accessories” category. Hardware as a whole was down year-over-year. The company posted $28.96 billion in net iPhone sales compared to $31.05 billion in Q2 2019.

After a very rough March, most big tech stocks have been roaring back into growth in April. Apple is in a more difficult position than other ad-driven businesses given the global complexity of its hardware supply chain.

“We are proud of our Apple teams around the world and how resilient our business and financial performance has been during these challenging times,” Apple CFO Luca Maestri said in a statement accompanying the release.