Shares of Apple (NASDAQ: AAPL) are up 2.7% in pre-open trading Thursday after the Cupertino company absolutely crushed analysts' expectations for fiscal Q2.

Apple made a profit of $1.40 per share to beat the $0.99 per share expected from the Street. Revenue was reported at $89.59 billion, a YoY increase of 53.7%, to easily surpass the $77.36 billion expected.

“This quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem to feel about better days ahead for all of us,” said Tim Cook, Apple’s CEO.

“Apple is in a period of sweeping innovation across our product lineup, and we’re keeping focus on how we can help our teams and the communities where we work emerge from this pandemic into a better world. That certainly begins with products like the all-new iMac and iPad Pro, but it extends to efforts like the 8 gigawatts of new clean energy we’ll help bring onto the grid and our $430 billion investment in the United States over the next 5 years.”

Apple generated $47.94 billion in sales from iPhones, which marks a growth of 65.5% YoY and vs $41.43 billion expected. Apple Services accumulated $16.90 billion in revenue, again higher than the $15.57 billion consensus.

Apple delivered a strong beat on Macs as well - $9.10 billion vs $6.86 billion, soaring more than 70% compared to a year-ago period. Other units also delivered stronger-than-expected Q2 results.

“We’re seeing strong first-time buyers on the Mac … it continues to run just south of 50%,” Cook told CNBC.

On AppStore, Cook said:

“Last year, the estimates are that there was over a half a trillion dollars of economic activity because of the store. And, so, this has been just an economic gamechanger for not only the United States, but several countries around the world. And, we’re going to go in and tell our story. And we’ll see where it goes. But, we’re confident.”

Apple reported about 660 million paid subscriptions across all business sectors, representing a jump of 40 million compared to the prior quarter.

All regions delivered big for Apple, with the Greater China region witnessing an 87% YoY growth rate.

Apple also authorized an increase of $90 billion in its share buyback plan and raised its dividend by 7%.

As in the past quarter, Apple didn’t offer guidance.

Apple delivered a "drop the mic" and “one for the record books” quarter as supercycle is playing out, notes Wedbush analyst, and Apple bull, Dan Ives. He raised the price target on AAPL to $185.00 per share from $175.00 per share.

“We have seen many blow out quarters in our many years covering Apple, although last night's March quarter we would characterize as one for the record books in Cupertino [...] Apple is essentially the Tom Brady of the tech world, the skeptics will continue to say the best is in the rear view mirror and the success is moderating yet Brady just won his 7th Chip and Apple just reported its most robust quarter in roughly 3 years,” the analyst wrote in a note.

“We believe Apple is a name which will deliver robust numbers the coming year and a further re-rating, with iPhone 12 handing the baton to iPhone 13 in September as part of this multi-year 5G upgrade cycle. In addition, the services business remains a pot of gold for Cupertino, is worth $1.3 trillion in a SOTP basis we believe, and speaks to the re-rating in Apple shares as the Street treats Cupertino no longer as a hardware company, but a broader software/services/ hardware ecosystem tech play.”

Morgan Stanley analyst Katy Huberty also hiked the price target to $161.00 per share from the prior $158.00 on higher FY22 guidance.

“We expect consensus to move toward our above Street FY21 and FY22revenue and EPS forecasts as strength across the portfolio and across regions combined with expected backlog growth in iPads and Macs speak to sustained revenue trends which has been a key investor debate. While the March quarter won't fully put to rest FY22estimate risk concerns, the strength helps de-risk consensus FY22 estimates given the higher FY21 revenue base implies current consensus is reflectingno Y/Y revenue growth despite accelerating installed base growth and user engagement,” the analyst said in a memo.

Elsewhere, Goldman Sachs upgraded AAPL to ‘Neutral’ from ‘Sell’ citing “material beats in all segments."