Apple kicked off fiscal 2026 with a blockbuster first quarter, delivering results that comfortably exceeded market expectations and highlighted strong demand across its core products and services.
For the quarter ending December 27, 2025, the company reported revenue of $143.8 billion, marking a 16% increase compared with the same period a year earlier.
Key takeaways:
Apple beat expectations with record fiscal Q1 revenue of $143.8B, up 16% year over year.
EPS rose 19% to $2.84, setting a new all-time quarterly record.
iPhone posted its strongest-ever December quarter, with records across all regions.
Services revenue hit a new high, rising 14% year over year.
Earnings also surprised to the upside, with diluted earnings per share rising 19% year over year to $2.84, reflecting both higher sales volumes and resilient margins during Apple’s most important seasonal quarter.
iPhone and Services Drive the Outperformance
The iPhone once again played a central role in Apple’s results, posting its strongest December-quarter performance on record. Demand was broad-based, with the company reporting all-time sales highs across every geographic segment, underscoring Apple’s continued global reach even amid mixed macroeconomic conditions.
Alongside hardware, Apple’s Services division delivered another standout performance. Revenue from services climbed 14% year over year, setting a new all-time record and reinforcing the segment’s growing importance as a stable, recurring revenue engine. The expanding services ecosystem continues to benefit from Apple’s massive installed base, which now exceeds 2.5 billion active devices worldwide.
Cash Flow Strength and Shareholder Returns
Apple’s strong operating performance translated into substantial cash generation. Operating cash flow for the quarter came in at nearly $54 billion, giving the company ample flexibility to reward shareholders while maintaining its balance sheet strength.
During the quarter, Apple returned almost $32 billion to shareholders through dividends and share repurchases. The board also approved a quarterly cash dividend of $0.26 per share, payable on February 12, 2026, to shareholders of record as of February 9.
Management Signals Confidence After Record Quarter
Chief Executive Tim Cook described the quarter as one of the strongest in the company’s history, pointing to exceptional customer demand and continued momentum across both products and services. Meanwhile, Chief Financial Officer Kevan Parekh highlighted the combination of revenue growth and margin strength, noting that the company achieved a new all-time high in quarterly earnings per share.
With record results to start the fiscal year, Apple enters 2026 with strong momentum, supported by loyal customers, a vast installed base, and a business model that continues to generate significant cash even as global economic uncertainty persists.
