The frenzy around the iPhone and the new computer: a 92% jump in profits
The importer of Apple products in Israel concludes an exceptionally strong quarter with a jump of tens of percent in sales, millions distributed to investors, and a new computer model that became a surprising sales hit.
Icon Group concludes the second quarter and the first half of 2026 with strong financial results, including double-digit growth in revenue and a significant jump in profits. The company, which deals in the import, distribution, and sale of computing and communication products, presented an improvement in all key metrics, despite the impact of the decline in the dollar exchange rate.
The group's revenue in the second quarter of 2026 grew by approximately 23.4% and totaled about 451 million shekels, compared to about 365.4 million shekels in the corresponding quarter last year. The increase was recorded in both of the company's operating segments, with the growth in sales of computers, peripheral equipment, and iPhones contributing significantly to the result.
Gross profit rose by approximately 31% and totaled about 48 million shekels, representing about 10.7% of revenue, compared to a rate of 10% in the corresponding period. Operating profit jumped by approximately 75.3% and reached about 17.6 million shekels, while EBITDA rose by approximately 48.9% and totaled about 18.6 million shekels.
Bottom line, a jump of approximately 92.6% was recorded in net profit, which totaled about 12.3 million shekels, compared to about 6.4 million shekels in the second quarter of 2025. At the same time, the company's board of directors decided to distribute a dividend of 10 million shekels. The distribution joins another dividend of 10 million shekels that was distributed based on the profits of the first quarter of the year.
In the retail segment, which includes the iDigital chain, revenue jumped by approximately 26% and reached about 126.8 million shekels. Sales in identical stores rose by 34.8%, and thus the chain completed a fourth consecutive quarter of growth. Operating profit in the segment jumped by approximately 193% and totaled about 7.4 million shekels. The company notes that in the corresponding quarter, in June 2025, the "Am KeLavi" operation took place, during which the stores were closed or operated in a partial format.
Distribution activity also showed growth. The segment's revenue rose by approximately 26.7% and totaled about 430.7 million shekels, while operating profit increased by approximately 35% and reached about 10.4 million shekels. This is despite the sharp decline in the dollar exchange rate, which stood at 2.95 shekels in the quarter compared to 3.581 shekels in the corresponding period, a decrease of approximately 17.6%. According to the company, the change in the currency rate alone reduced the revenue of the distribution segment by about 69 million shekels.
One of the main growth engines is the increasing demand for computers and peripheral equipment following the growing use of artificial intelligence (AI) applications. The increase in processing requirements causes users to upgrade to computers with more advanced processors, expanded memory, and powerful graphics cards.
Alongside this, the company benefited from new launches, including Mac computers launched in March 2026, the MacBook Neo series, which offers computers at a more accessible price, as well as high demand for iPhone 17 devices.
In the first half of the year, significant growth was also recorded. The group's revenue rose by approximately 20.6% and totaled about 859.3 million shekels. Operating profit grew by approximately 56.6% to 34.8 million shekels, while net profit jumped by approximately 78.5% to 22.4 million shekels. During this period, the impact of the dollar exchange rate on the revenue of the distribution segment totaled about 114 million shekels.
Examining the last 12 months, the group presents a revenue pace of about 1.8 billion shekels. Net profit for the period totaled about 51.1 million shekels, operating profit reached about 76.9 million shekels, and EBITDA totaled about 81.1 million shekels.
Icon Group CEO, Doron Sela, said:
"We are reaping the fruits of the growth strategy and concluding another excellent quarter with growth of over 20% in revenue and a sharp increase in profits, despite the erosion in the dollar exchange rate."
Sela added that the growth in both operating segments was due, among other things, to the increasing use of AI applications and the launch of MacBook Neo computers, and noted that in the retail sector, an increase of approximately 35% was recorded in sales in identical stores, alongside high demand for the iPhone 17 series and an increase in computer sales.
