Revenue
$109.4B
est. $94.0B (yr ago)
EPS
$2.02 diluted
est. $1.57 (yr ago)
Free Cash Flow
$51.6B
est. Not disclosed (yr ago)
Gross Margin
50.1%
est. 46.5% (yr ago)
Operating Margin
32.6%
est. 30.0% (yr ago)
What changed
Revenue increased 16.4% year over year to $109.4 billion, led by double-digit growth in iPhone, Mac and Services and growth across every geographic segment. Gross margin reached 50.1%, but approximately 2 percentage points came from tariff refunds; diluted EPS rose 28.7% to $2.02, including a $0.11 refund benefit.
Impact on thesis
Initial base fair value is $312 per share and does not move because there was no prior coverage to revise. The quarter strengthens the operating case, but Apple’s $324.60 price already implies about 35.4 times annualized nine-month EPS, leaving the shares fairly valued.
Suyog Bhise · 10 Sept 2026
Revenue
$16.99B
est. $15.42B (yr ago)
EPS
$2.03
est. $0.52 (yr ago)
Free Cash Flow
$3.56B
est. Not disclosed (yr ago)
Gross Margin
71.0%
est. Not disclosed (yr ago)
Operating Margin
37.9%
est. 31.7% (yr ago)
What changed
Revenue increased 10.2% from Q2 FY2025, while EPS rose to $2.03 from $0.52. Operating margin expanded 6.2 percentage points to 37.9%, and the supplied XBRL values imply $3.56B of free cash flow. Gross margin was 71.0%, but the year-ago comparison was not disclosed in the supplied quarterly data.
Impact on thesis
There was no prior SageNoodle fair value to revise. We initiate fair value at $251.6 per share, effectively in line with the $253.70 market price, because the stronger quarter is balanced by a demanding 25 times normalized free-cash-flow assumption and substantial debt.
Suyog Bhise · 10 Sept 2026
Revenue
$11.164B
est. $11.140B (Q2 FY2025 yr ago)
EPS
$0.61
est. $1.01 (Q2 FY2025 yr ago)
Free Cash Flow
$0.916B
est. $0.000B (Q2 FY2025 yr ago)
Gross Margin
39.4%
est. Not disclosed (Q2 FY2025 yr ago)
Operating Margin
12.0%
est. 18.4% (Q2 FY2025 yr ago)
What changed
Revenue was effectively flat year over year, increasing 0.2% to $11.164B, while EPS fell 39.6% to $0.61 and operating margin contracted 6.4 percentage points to 12.0%. Free cash flow was $0.916B, although the supplied year-ago quarterly table reports zero and therefore provides a weak comparison. The filing period indicates Q2 FY2026, despite the supplied quarterly series labeling the same financial values Q1 FY2026.
Impact on thesis
There was no prior SageNoodle fair value to revise; this update establishes a $111 base-case fair value. The quarter does not support a higher valuation because flat revenue was accompanied by materially weaker earnings and operating profitability.
Suyog Bhise · 10 Sept 2026
Revenue
$18.72B
est. $17.73B (yr ago)
EPS
$3.80
est. $3.49 (yr ago)
Free Cash Flow
$1.51B
est. Not disclosed (yr ago)
Gross Margin
Not disclosed
est. Not disclosed (yr ago)
Operating Margin
17.0%
est. 16.8% (yr ago)
What changed
Revenue increased 5.6% year over year to $18.72 billion, while EPS rose 8.9% to $3.80. Operating margin expanded 20 basis points to 17.0%, and the supplied cash-flow values imply $1.51 billion of quarterly free cash flow, although the comparable prior-year figure was not disclosed.
Impact on thesis
With no prior coverage, we establish a $210 base-case fair value rather than revise an existing estimate. The quarter supports that value through higher revenue, EPS and operating margin, but absent management guidance and gross-margin disclosure limits the case for a higher estimate.
Suyog Bhise · 10 Sept 2026
Revenue
$6.62B
est. $5.87B (yr ago)
EPS
$4.25 GAAP
est. $3.94 GAAP (yr ago)
Free Cash Flow
$2.11B
est. $2.14B (yr ago)
Gross Margin
89.2%
est. 89.1% (yr ago)
Operating Margin
33.8%
est. 35.9% (yr ago)
What changed
Revenue increased 12.7% year over year to $6.62 billion, supported by 14.0% subscription growth and AI-first ARR that more than tripled to over $500 million. GAAP EPS rose 7.9%, but operating margin contracted 2.1 percentage points and free cash flow declined 1.7%; Adobe nevertheless raised its FY2026 revenue and non-GAAP EPS targets.
Impact on thesis
With no prior SageNoodle valuation, this update establishes fair value at $287.20 per share using the midpoint of Adobe's FY2026 GAAP EPS target and an assumed 16.0x multiple. The quarter supports that valuation through double-digit subscription growth and higher guidance, although weaker GAAP margin and cash conversion prevent a more aggressive multiple.
Suyog Bhise · 10 Sept 2026