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Apple TV's Emmy Sweep Adds Momentum to AAPL's Services Business
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Key Takeaways
Apple TV won 29 Emmys, while its originals have amassed 917 wins and 3,827 nominations.
Apple Services revenue rose 12% to a June-quarter record of $30.74 billion, with a 75.6% gross margin.
Apple surpassed 1.5 billion paid subscriptions, supported by over 2.5 billion active devices.
Apple’s (AAPL - Free Report) streaming platform Apple TV strengthened its position in premium streaming after becoming the most awarded network at the 78th Primetime Emmy Awards with 29 wins. Widow’s Bay led the performance with 14 awards, including Outstanding Comedy Series, making it the most Emmy-awarded freshman comedy series in history. The series also secured acting, writing and directing honors. Other Apple TV titles, including Pluribus, Slow Horses, Margo’s Got Money Troubles, Palm Royale and Mr. Scorsese, contributed to the tally. Apple Originals have now accumulated 917 wins and 3,827 award nominations since the streaming service’s launch.
The growing critical success of Apple TV is expected to strengthen Apple’s Services business by attracting viewers and supporting subscriber engagement. Management highlighted Widow’s Bay among the titles driving Apple TV’s content slate on the third-quarter fiscal 2026 (June quarter) earnings call. Apple TV viewership reached an all-time high in the June quarter, while video revenues posted strong double-digit growth and achieved a June-quarter record.
Apple’s broader Services business is already benefiting from an expanding ecosystem. Services revenues increased 12% year over year to a June-quarter record of $30.74 billion, while revenues reached records across every Services category. Apple surpassed 1.5 billion paid subscriptions, and both transacting and paid accounts reached all-time highs. The company’s installed base of more than 2.5 billion active devices provides a substantial audience through which Apple can distribute and cross-sell offerings such as Apple TV.
The Services business is also highly profitable. Apple reported a 75.6% Services gross margin in the June quarter, substantially higher than its 40.1% Products gross margin. Meanwhile, Services revenues increased from $27.42 billion in the prior-year quarter to $30.74 billion. Continued investment in award-winning Apple TV originals should therefore help deepen engagement within Apple’s ecosystem and support the recurring-revenue profile of its Services segment.
Apple Faces Stiff Competition
AAPL is facing stiff competition from the likes of Netflix (NFLX - Free Report) and Disney (DIS - Free Report) in the streaming space.
Netflix is challenging Apple TV through its significantly broader global scale, expanding content formats and strong engagement. Netflix said it reaches an audience approaching one billion people and has roughly 330 million subscription households, giving it substantial distribution and content-amortization advantages. The company is also broadening beyond traditional films and series into live programming, video podcasts and cloud games. Live events are helping drive subscriber acquisition and advertising revenues, while partnerships such as TF1 in France are expanding Netflix’s local programming and strengthening engagement.
Disney is challenging Apple TV through the strength of Disney+, Hulu and ESPN and its extensive portfolio of franchises. Disney is positioning Disney+ as the digital centerpiece of its broader ecosystem, using franchises such as Pixar, Marvel and Star Wars across theatrical releases, streaming, merchandise and physical experiences. Disney is also strengthening its streaming proposition through bundling and sports. The company is integrating Hulu more closely with Disney+, plans to add more live TV and add-ons and views Disney+ as a potential aggregator of third-party services. Disney also intends to bring selected premium sports events to Disney+ and use ESPN to encourage customers to move toward its higher-value Trio Bundle.
Apple shares have returned 24% year to date, outperforming the broader Zacks Computer and Technology sector’s return of 16.9%.
Apple Stock’s Performance
Image Source: Zacks Investment Research
The AAPL stock is trading at a premium, with a forward 12-month price/earnings of 35.44X compared with the broader sector’s 20.38X. AAPL has a Value Score of F.
AAPL Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $8.85 per share, up 0.9% over the past 60 days, suggesting 18.63% year-over-year growth.
View the Zacks #1 Rank List
Image: Bigstock
Apple TV's Emmy Sweep Adds Momentum to AAPL's Services Business
Key Takeaways
Apple’s (AAPL - Free Report) streaming platform Apple TV strengthened its position in premium streaming after becoming the most awarded network at the 78th Primetime Emmy Awards with 29 wins. Widow’s Bay led the performance with 14 awards, including Outstanding Comedy Series, making it the most Emmy-awarded freshman comedy series in history. The series also secured acting, writing and directing honors. Other Apple TV titles, including Pluribus, Slow Horses, Margo’s Got Money Troubles, Palm Royale and Mr. Scorsese, contributed to the tally. Apple Originals have now accumulated 917 wins and 3,827 award nominations since the streaming service’s launch.
The growing critical success of Apple TV is expected to strengthen Apple’s Services business by attracting viewers and supporting subscriber engagement. Management highlighted Widow’s Bay among the titles driving Apple TV’s content slate on the third-quarter fiscal 2026 (June quarter) earnings call. Apple TV viewership reached an all-time high in the June quarter, while video revenues posted strong double-digit growth and achieved a June-quarter record.
Apple’s broader Services business is already benefiting from an expanding ecosystem. Services revenues increased 12% year over year to a June-quarter record of $30.74 billion, while revenues reached records across every Services category. Apple surpassed 1.5 billion paid subscriptions, and both transacting and paid accounts reached all-time highs. The company’s installed base of more than 2.5 billion active devices provides a substantial audience through which Apple can distribute and cross-sell offerings such as Apple TV.
The Services business is also highly profitable. Apple reported a 75.6% Services gross margin in the June quarter, substantially higher than its 40.1% Products gross margin. Meanwhile, Services revenues increased from $27.42 billion in the prior-year quarter to $30.74 billion. Continued investment in award-winning Apple TV originals should therefore help deepen engagement within Apple’s ecosystem and support the recurring-revenue profile of its Services segment.
Apple Faces Stiff Competition
AAPL is facing stiff competition from the likes of Netflix (NFLX - Free Report) and Disney (DIS - Free Report) in the streaming space.
Netflix is challenging Apple TV through its significantly broader global scale, expanding content formats and strong engagement. Netflix said it reaches an audience approaching one billion people and has roughly 330 million subscription households, giving it substantial distribution and content-amortization advantages. The company is also broadening beyond traditional films and series into live programming, video podcasts and cloud games. Live events are helping drive subscriber acquisition and advertising revenues, while partnerships such as TF1 in France are expanding Netflix’s local programming and strengthening engagement.
Disney is challenging Apple TV through the strength of Disney+, Hulu and ESPN and its extensive portfolio of franchises. Disney is positioning Disney+ as the digital centerpiece of its broader ecosystem, using franchises such as Pixar, Marvel and Star Wars across theatrical releases, streaming, merchandise and physical experiences. Disney is also strengthening its streaming proposition through bundling and sports. The company is integrating Hulu more closely with Disney+, plans to add more live TV and add-ons and views Disney+ as a potential aggregator of third-party services. Disney also intends to bring selected premium sports events to Disney+ and use ESPN to encourage customers to move toward its higher-value Trio Bundle.
AAPL’s Share Price Performance, Valuation & Estimates
Apple shares have returned 24% year to date, outperforming the broader Zacks Computer and Technology sector’s return of 16.9%.
Apple Stock’s Performance
Image Source: Zacks Investment Research
The AAPL stock is trading at a premium, with a forward 12-month price/earnings of 35.44X compared with the broader sector’s 20.38X. AAPL has a Value Score of F.
AAPL Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $8.85 per share, up 0.9% over the past 60 days, suggesting 18.63% year-over-year growth.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Apple currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.