Apple delivered a blockbuster first quarter for 2026, crushing Wall Street expectations with revenue of $143.8 billion and unprecedented iPhone sales that CEO Tim Cook described as “simply staggering.” The tech giant reported quarterly revenue up 16 percent from the same period last year, marking what Cook called a quarter for the “record books.”
The company announced earnings per share of $2.84, surpassing analyst estimates of $2.67, with net income reaching $42.1 billion. Apple’s stock rose over 1 percent in after-hours trading following the January 29 announcement, signaling investor confidence in the company’s performance and future outlook.
iPhone Drives Record-Breaking Quarter
iPhone revenue soared to $85.27 billion during the fiscal first quarter ending December 27, 2025, representing a massive 23 percent jump year-over-year. This figure significantly exceeded analyst forecasts ranging from $78.3 billion to $78.65 billion and marked the largest iPhone quarter in company history.
Cook emphasized the extraordinary demand during an earnings call, stating that iPhone set all-time revenue records across every geographic segment. The company achieved record sales in the Americas, Europe, Japan, and the rest of the Asia-Pacific region, demonstrating widespread appeal despite global economic uncertainties.
The strong performance reflects robust sales of iPhone 17 models launched in September. More than 2.5 billion active devices are now in Apple’s installed base, showcasing exceptional customer satisfaction and loyalty across the product ecosystem.
China Rebounds with Dramatic Growth
Apple’s performance in Greater China, including Taiwan and Hong Kong, surged 38 percent year-over-year to reach $25.53 billion in the quarter. This dramatic rebound silenced concerns about the company’s competitive position in one of its most critical markets.
Cook highlighted that the quarter represented the best iPhone performance in Greater China’s history, with the device claiming the top three smartphone positions in urban China during the period. Store traffic grew by strong double digits, while the company saw record numbers of upgraders—existing iPhone users purchasing newer models—and strong double-digit growth in switchers, or customers moving from competing brands.
The installed base reached all-time highs in both Greater China and mainland China, suggesting sustained momentum in the region that exceeded company expectations.
India Continues Upward Trajectory
India delivered another strong quarter for Apple with double-digit revenue growth, setting records for iPhone, Mac, and iPad sales, along with all-time high services revenue. Cook characterized India as a “huge opportunity,” noting the country’s status as the world’s second-largest smartphone market and fourth-largest PC market.
The company plans to open its sixth store in Mumbai shortly, underscoring its commitment to expanding in the Indian market. Data from Counterpoint shows Apple ended 2025 with its highest smartphone market share ever in India, capturing 9 percent by volume and 28 percent by value, with the iPhone 16 emerging as the most shipped model.
Mixed Results Across Other Product Lines
While iPhone dominated the quarter, other product categories showed varied performance. Apple’s services division, encompassing iCloud, App Store, and Apple Pay, grew approximately 14 percent and achieved an all-time revenue record.
iPad revenue increased 6 percent to $8.6 billion, exceeding expectations, with half of iPad purchasers being first-time buyers. However, Mac revenue declined roughly 7 percent year-over-year despite the November launch of an updated MacBook Pro featuring the M4 chip. The wearables segment fell approximately 2.2 percent.
The company warned that rising memory prices would impact gross margins in the current period, with significantly increasing market pricing for memory components.
Strong Outlook and Strategic Acquisition
Apple projected revenue growth between 13 and 16 percent for the March quarter, translating to an estimated range of $107.8 billion to $110.66 billion—well above analyst expectations of $104.84 billion. The services segment is expected to maintain growth rates comparable to the 14 percent achieved in the December quarter.
The company also confirmed acquiring Q.AI, an Israeli startup specializing in AI technology for audio, in a deal reportedly valuing the four-year-old company at nearly $2 billion. This represents Apple’s second-largest acquisition after the $3 billion Beats purchase in 2014. Founded in Tel Aviv in 2022, Q.AI develops machine learning applications to help devices understand challenging audio such as whispered speech, positioning Apple to advance in the AI-powered wearables race.
Apple emphasized its $600 billion investment commitment to building manufacturing capacity in the United States, shipping servers for Apple Intelligence from a new Houston facility while producing cover glass for iPhone and Apple Watch in Kentucky.
