In a historic display of hardware and software dominance, Apple Inc. reported a record-shattering $143.8 billion in revenue for its first fiscal quarter of 2026 (ended December 27, 2025).
The results, released on January 29, 2026, show a 16% year-over-year increase, fueled by a “simply staggering” demand for the iPhone and a surging services ecosystem. Net profit for the holiday quarter hit $42.1 billion, representing a 16% jump from the previous year.
1. The Financial Snapshot: Q1 FY26 vs. Q1 FY25
Apple beat analyst estimates across nearly every major metric, setting new all-time records for total revenue and earnings per share (EPS).
| Financial Metric | Q1 FY2025 | Q1 FY2026 | Change (YoY) |
| Total Revenue | $124.3 Billion | $143.8 Billion | ↑ 16% |
| Net Income | $36.3 Billion | $42.1 Billion | ↑ 16% |
| Earnings Per Share (EPS) | $2.40 | $2.84 | ↑ 19% |
| Gross Margin | 46.9% | 48.2% | ↑ 130 bps |
2. Segment Performance: iPhone is Still King
The iPhone 17 series, particularly the premium Pro variants, led a massive upgrade cycle that exceeded even Apple’s internal expectations.
- iPhone Revenue: Skyrocketed 23.3% to reach an all-time high of $85.3 billion.
- Services: The segment—including Apple Music, iCloud, and the App Store—hit a record $30.01 billion, up 14% YoY.
- iPad: Saw a healthy 6% growth to $8.6 billion, driven by a record number of upgraders.
- Mac & Wearables: Both segments saw slight declines (-7% and -2% respectively) due to tough year-over-year comparisons and supply constraints on the new AirPods Pro 3.
3. Regional Growth: The “India & China” Factor
Apple’s aggressive expansion into emerging markets and a resurgence in China were pivotal to the quarter’s success.
- Greater China Surge: Sales jumped 38% to $25.5 billion, silencing critics who predicted a permanent decline in the region.
- India’s “Terrific” Quarter: CEO Tim Cook highlighted India as a major growth engine, noting “strong double-digit revenue growth” and plans to open a second store in Mumbai.
- Americas: Remained the largest region with $58.5 billion in revenue, up 11% YoY.
4. The AI Pivot: Apple Intelligence + Google Gemini
During the earnings call, Tim Cook confirmed that Apple Intelligence is now being used by a majority of eligible iPhone users.
- Next-Gen Foundation Models: Apple announced a strategic partnership with Google to build the next generation of Apple’s foundation models based on Gemini technology.
- Operating Cash Flow: These records generated nearly $54 billion in operating cash flow, allowing Apple to return almost $32 billion to shareholders this quarter.
Conclusion: A “Supply Chase” Into 2026
Apple enters the second quarter of 2026 in “supply chase mode,” with demand still outstripping production for the iPhone 17 Pro. While rising memory costs and silicon constraints remain risks, the company projected another 13% to 16% revenue growth for the March quarter. With over 2.5 billion active devices now in its installed base, Apple has successfully turned its AI-driven hardware cycle into a massive, high-margin services treadmill.
