Apple delivered a strong start to fiscal 2026, reporting a sharp rise in revenue fueled by record-breaking iPhone demand during the holiday quarter.
For the three months ending in late December 2025, total revenue climbed to about $143.8 billion. That marked roughly 16% year-over-year growth and came in ahead of Wall Street expectations.
Earnings also exceeded forecasts, with profit per share reaching approximately $2.84. Management described iPhone demand as exceptionally strong, setting a new quarterly sales record for the product line.
Key Performance Highlights
- iPhone revenue reached around $85 billion, the highest in company history
- Services revenue grew year over year to roughly $30 billion
- Revenue from Greater China posted one of the fastest growth rates globally
- Installed base of active devices expanded to about 2.5 billion worldwide
Not all segments moved higher. Mac revenue declined compared with the same period last year, while wearables, home and accessories sales fell short of expectations.
Margin, Outlook and Strategy
Apple reported a gross periphery just over 48 and expects a analogous range in the coming quarter. Supply constraints tied to memory components pressured costs, but the company still forecast double-digit revenue growth for fiscal Q2.
Apple also confirmed it completed an artificial intelligence startup acquisition and continues to invest heavily in AI across its products and services. The strong quarterly performance pushed broader market sentiment around Apple shares, as investors balanced record iPhone demand against rising costs, expanding AI investment and ongoing trade uncertainties. Recent market moves show how earnings momentum and long-term strategy are shaping valuation, with Apple’s stock responding to both growth optimism and external pressures, as explained in this analysis of how Apple’s share price rose amid earnings gains alongside AI ambitions and tariff concerns.
Segment Snapshot
| Category | Trend |
| iPhone | Record growth |
| Services | Steady expansion |
| Mac | Year-over-year decline |
| Wearables | Below expectations |
The results underscore how central the iPhone remains to Apple’s growth as it expands its ecosystem and AI capabilities.
