Apple Inc. has delivered a fiscal first quarter for 2026 that dramatically surpassed all market forecasts, posting the most successful holiday period in the company’s history. The technology giant reported revenue of $143.8 billion, driven primarily by unprecedented demand for its flagship iPhone.
Key Financial Highlights:
– Revenue: $143.8 billion (a 16% year-over-year increase)
– Earnings Per Share (EPS): $2.84 (up 19%)
– iPhone Revenue: $85.3 billion (a surge of 23%)
– Operating Cash Flow: $53.9 billion (a record high)
Unprecedented iPhone Demand Powers Results
The iPhone segment was the undeniable star, crushing expectations with $85.3 billion in sales—a figure approximately $7 billion above analyst projections. In a discussion with CNBC, CEO Tim Cook described consumer response to the iPhone 17 series, launched in September, as “nothing short of phenomenal.”
This strength was a global phenomenon, with Apple registering double-digit growth across every geographic region it operates in. The company’s installed base of active devices has now reached 2.5 billion, representing an increase of 150 million units in the past twelve months.
Segment Performance: A Mixed Picture
While the iPhone and Services divisions shone, other product categories presented a more varied performance. The Services segment achieved a new all-time high of $30 billion, growing by 14%. iPad revenue saw a solid 6% increase to $8.6 billion.
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In contrast, Mac sales declined by 7% to $8.4 billion. The Wearables, Home, and Accessories category also experienced a slight dip, falling 2% to $11.5 billion. Despite these softer spots, Apple’s overall gross margin improved to 48.2%.
Analyst Concerns and Strategic Investments
Despite the blockbuster numbers, some market experts voiced caution. Analysts from J.P. Morgan highlighted potential constraints in advanced manufacturing nodes. Company management acknowledged that memory pricing trends would likely exert more margin pressure in the upcoming second quarter than in recent periods.
A significant jump in Research & Development spending, from $8.27 billion to $10.89 billion, signals heavy investment in artificial intelligence technologies. Apple’s collaboration with Google on “Apple Intelligence,” which incorporates Google’s Gemini models, has received a mixed reception. Needham analyst Laura Martin criticized the move, suggesting Apple was “selling its soul” through the partnership.
Forward Guidance and Shareholder Returns
Looking ahead to the current March quarter, Apple’s leadership anticipates revenue growth in the range of 13% to 16%. The company forecasts a gross margin between 48% and 49%, which exceeds the analyst consensus estimate of 47.3%.
For shareholders, the ex-dividend date is set for February 9th, with a payment of $0.26 per share to follow three days later. The market will next hear from Apple when it reports its subsequent quarterly results on April 30th.
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