Apple reported a record-breaking start to fiscal 2026, posting a staggering $143.8 billion in revenue and $42.1 billion in net income for the quarter ended December 27. This represented a 16% year-over-year rise in revenue and a 19% jump in diluted earnings per share to $2.84, both of which set new quarterly highs for the tech giant. Apple CEO Tim Cook described the results as ‘remarkable’, highlighting exceptional demand for the iPhone across all major regions and continued momentum in its services business.
The iPhone remained a prominent part of the company’s performance, which generated $85.27 billion in revenue, an increase of around 23% compared with the year-ago quarter. That means the iPhone alone accounted for about 60% of the company’s total revenue in Q1 FY26. According to the company, the growth was driven by strong global demand for the iPhone 17 lineup, which encouraged a higher number of customers to upgrade their devices.
At the same time, the tech titan’s Services segment also hit an all-time revenue record, contributing $30.01 billion for the quarter, up about 14% year over year. Notably, this segment includes App Store fees, Apple Music and Apple TV+ subscriptions, iCloud storage, and payment services, and its growth shows deeper engagement from Apple’s expanding base of device users. This becomes more significant as the firm’s active installed device base surpasses 2.5 billion devices worldwide.
Beyond these core categories, Apple’s other product lines showed a mixed performance. iPad revenue expanded by around 6% to about $8.6 billion. In contrast, Mac revenue declined almost 7% to $8.39 billion. Even Wearables, Home and Accessories, which includes products like Apple Watch and AirPods, also recorded a modest decline of around 2% to $11.49 billion, partly due to supply constraints in certain product lines.
In terms of geography, the Cupertino-headquartered giant saw growth across all major regions. Greater China revenue jumped nearly 38% year over year to about $25.5 billion, while the Americas generated $58.5 billion in revenue, up around 11%. Europe contributed $38.1 billion, reflecting around 13% growth, and Japan posted $9.4 billion in revenue. The Rest of Asia Pacific (which also includes India) added $12.1 billion, marking solid year-over-year growth.
From a financial standpoint, Apple continued to show strong profitability and cash generation. The company reported a gross margin of about $69.2 billion, representing an almost 19% increase year over year, and generated more than $53.9 billion in operating cash flow during the quarter. The firm also remained active in returning capital to shareholders, repurchasing $24.7 billion worth of its own shares and paying about $3.9 billion in dividends. By the end of the quarter, Apple held over $45.3 billion in cash and cash equivalents. Meanwhile, the company’s management shared a positive outlook for the second quarter of fiscal 2026, forecasting year-over-year revenue growth of 13% to 16%.
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