Key Financial Data
- Fiscal Q1 Total revenue: $143.8 billion (+16% year-over)
- Gross margin: $69.2 billion (+19%)
- Operating income: $50.9 billion (+19%)
- Net income: $42.1 billion (+16%)
- Total operating expenses: $18.4 billion (+19%)
- Product revenue: $113.7 billion (+16%)
- iPhone revenue: $85.3 billion (+23%)
- iPad revenue: $8.6 billion (+6%)
- Mac revenue: $8.4 billion (-7%)
- Wearables & accessories revenue: $11.5 billion (-2%)
- Services revenue: $30 billion (+14%)
- Read more Q4 earnings coverage
- (note: Apple fiscal Q1 2026 coincides with Q4 2025)
Apple kicked off fiscal 2026 with a record-setting first quarter (Q1), driven by strong iPhone demand, double-digit growth in services revenue and a sharp increase in cash generation.
On Thursday, the company revealed total revenue of $143.8 billion for the quarter ended December 27, up 16 percent from Q1 2025. Net income rose to $42.1 billion, compared with $36.3 billion a year earlier, while diluted earnings per share increased 18 percent to $2.84.
The iPhone remained Apple’s largest growth engine, generating $85.3 billion in revenue, up 23 percent year over year. The company said the iPhone segment posted its best-ever December quarter, with records set across all geographic regions. Services revenue climbed to a quarterly record of $30.0 billion, up 14 percent, supported by continued growth across the App Store, subscriptions and payments.
Total products revenue rose to $113.7 billion, up 16 percent. Sales of Mac computers declined 7 percent to $8.4 billion, while iPad revenue increased 6 percent to $8.6 billion. Revenue from Wearables, Home and Accessories edged down 2 percent to $11.5 billion.
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Gross margin expanded to $69.2 billion, up 19 percent year over year, reflecting higher revenue and favorable product mix. Operating income rose 19 percent to $50.9 billion, while operating expenses totaled $18.4 billion. Research and development spending increased 32 percent to $10.9 billion, reflecting continued investment in new products and technologies.
Regionally, Apple posted double-digit growth in most markets. Revenue in the Americas rose 11 percent to $58.5 billion, while Europe increased 13 percent to $38.1 billion. Greater China was a standout, with revenue jumping 38 percent to $25.5 billion. Japan revenue rose 5 percent to $9.4 billion, and Rest of Asia Pacific increased 18 percent to $12.1 billion.
Tim Cook, the CEO of Apple, said Apple’s fiscal Q2 exceeded internal expectations, with record-setting revenue and unprecedented growth for its iPhone business.
“During the December quarter, our record business performance and strong margins led to EPS growth of 19 percent, setting a new all-time EPS record,” Kevan Parekh, the Chief Financial Officer of Apple, said in a statement. “These exceptionally strong results generated nearly $54 billion in operating cash flow, allowing us to return almost $32 billion to shareholders.”
Apple also generated significantly more cash during the quarter. Cash from operating activities totaled $53.9 billion, up from $29.9 billion a year earlier. The company ended the quarter with $45.3 billion in cash, cash equivalents and restricted cash. During the period, Apple returned nearly $32 billion to shareholders through dividends and share repurchases and declared a quarterly dividend of $0.26 per share, payable February 12.
