Apple Earnings Hit Record on iPhone Surge
Apple earnings posted record fiscal Q1 revenue as iPhone strength and a China rebound lifted margins and backed $32B in returns, supporting buy-side flows.
KEY TAKEAWAYS
- Apple posted record fiscal Q1 revenue of $143.8 billion and EPS of $2.84.
- iPhone revenue rose to $85.27 billion, powering margin expansion to 48.2%.
- Greater China revenue rebounded 38% and cash flow funded about $32 billion in returns.
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Apple Inc. (AAPL) reported record revenue and earnings for the fiscal first quarter ended December 27, 2025, driven by strong iPhone demand and a rebound in Greater China that expanded margins and supported substantial cash returns to shareholders.
Record Financial Performance
Apple said in a press release on January 29, 2026, that total revenue for the quarter reached $143.8 billion, up 16% year over year and above the $138.4 billion Wall Street consensus. Diluted earnings per share rose 19% to $2.84, beating the $2.68 consensus. Gross margin expanded 130 basis points to 48.2% from 46.9%. Operating cash flow for the nine-month period totaled about $54 billion, enabling roughly $32 billion in shareholder returns. The board declared a quarterly dividend of $0.26 per share payable February 12, 2026, with a record date of February 9. Apple’s installed base surpassed 2.5 billion active devices, an all-time high.
iPhone and Regional Drivers
iPhone revenue reached $85.27 billion, up 23% year over year and accounting for about 59.3% of total revenue. Services revenue set a record at $30.01 billion, rising 14%. Mac revenue declined 7% to $8.39 billion, while iPad revenue increased 6% to $8.50 billion. Wearables, Home & Accessories fell 2% to $11.49 billion.
Greater China rebounded 38% year over year. The Americas rose 11%, Europe gained 13%, Japan increased 5%, and the rest of Asia Pacific advanced 18%. Apple did not provide forward guidance for the coming quarter, continuing a practice it has maintained for over five years. In prepared remarks, CEO Tim Cook described iPhone demand as “unprecedented,” calling it the product’s best quarter ever. The results highlight how margin expansion and strong cash flow translated into sizable shareholder returns and a fresh dividend.
