Apple's earnings have surpassed expectations, putting the company on track for its best day since 2022, with a $110 billion stock buyback announcement.

• On Friday, Apple shares rose after the company announced better-than-anticipated second-quarter earnings and a record-breaking stock buyback program.
• Apple, the iPhone manufacturer, declared on Thursday that it would purchase $110 billion of its own shares, setting a new record for the largest buyback in history.
• During the quarter, there was a 4% overall decrease in sales and a 10% drop in iPhone sales compared to the previous year.

Apple shares experienced a more than 6% increase in value on Friday morning following the company's announcement of better-than-expected second-quarter earnings and a record-breaking stock buyback program. If the gains persist until the market closes, it will represent the best day for Apple shares since November 30, 2022.

Apple, the iPhone maker, announced on Thursday that it would repurchase $110 billion of its shares, surpassing its prior repurchases and becoming the biggest buyback in U.S. history. The company's earnings of $1.53 per share on revenue of $90.75 billion exceeded analysts' estimates of earnings of $1.50 per share on revenue of $90.01 billion, according to LSEG.

Despite a 4% overall sales decrease and a 10% drop in iPhone sales year over year during the quarter, Apple CEO Tim Cook stated that quarterly sales were negatively impacted by a challenging comparison to the previous year's sales.

Bank of America analysts reaffirmed their buy rating of Apple stock and increased their price target to $230 from $225 in a Friday report, stating that they anticipate the company to introduce generative artificial intelligence features for the iPhone in the near future.

The production of iPhones in Mainland China is increasing, and positive revisions are being made, with GenAI features driving a strong upgrade cycle.

On Thursday, JPMorgan analysts raised their price target for Apple from $210 to $225 while keeping an overweight rating. They cited "resilient" year-over-year iPhone revenues and "expectations of an upgrade cycle-led tailwind in iPads" as reasons for the increase.

"Although a moderate increase in revenue year-over-year may not be the optimal result, it now offers insight into potential revenue growth opportunities in the future with the help of product cycles across various hardware devices and an AI-driven smartphone cycle."

On Friday, Morgan Stanley analysts maintained their overweight rating of Apple and increased their price target from $210 to $216, citing the company's strong quarterly performance, growth in iPhone shipments to China, stock buyback, and hints at upcoming AI updates.

"It's difficult not to become more optimistic here," they stated.

— CNBC's Michael Bloom contributed to this report.