Apple posted stronger-than-expected financial results for its fiscal first quarter, propelled by robust demand for new iPhone models. The company’s earnings and revenue outpaced analyst projections, helping to underscore resilience in core business segments that remain important to investors.
Earnings hit $2.84 per share for the quarter, surpassing consensus by analysts from LSEG of $2.67 per share. Apple generated $143.76 billion in revenue, well above forecasts that called for $138.48 billion. Net income reached $42.1 billion, up from $36.33 billion a year earlier. Gross margin increased to 48.2%, outperforming estimates.
Revenue from the iPhone segment surged 23% year-on-year, reaching $85.27 billion, which the company linked to continued strong performance of the iPhone 17 lineup launched in September. Mac revenue came in at $8.39 billion, slightly below expectations, while iPad sales generated $8.60 billion, narrowly topping forecasts. The Wearables, Home and Accessories segment recorded $11.49 billion, and Services brought in $30.01 billion—results that were close to market estimates.
Apple experienced exceptional sales growth in Greater China, including Taiwan and Hong Kong, with revenue in the region climbing 38% to $25.53 billion. According to CEO Tim Cook, this surge was largely attributable to iPhone sales.
Capital expenditures for the quarter declined to $2.37 billion from $2.94 billion in the previous year. However, research and development costs increased to $10.89 billion, up from $8.27 billion in the same period last year.
Looking ahead, Chief Financial Officer Kevan Parekh stated that Apple projects company-wide revenue growth of 13% to 16% year-over-year for the fiscal second quarter ending in March 2026, factoring in anticipated constraints in iPhone supply linked to challenges in advanced chip manufacturing. CEO Cook acknowledged that the company expects to face higher memory prices and is evaluating several options in response.
