Summary
Apple Inc. reported strong financial results for the first fiscal quarter of 2026, ending December 27, 2025. Total net sales grew 16% year-over-year to $143.76 billion, driven by a significant 23% increase in iPhone sales, particularly the Pro models, and a robust 14% growth in the Services segment. Profitability also saw substantial improvement, with net income rising 16% to $42.10 billion, leading to a diluted EPS of $2.84. The company demonstrated solid operational efficiency, with gross margin increasing to 48.2% from 46.9% in the prior year, benefiting from product mix and services growth, though partially offset by tariff costs. Apple continues its aggressive capital return program, repurchasing $25.0 billion of stock and paying $3.9 billion in dividends, underscoring its commitment to shareholder value.
Financial Highlights
52 data points| Revenue | $143.76B |
| Cost of Revenue | $74.53B |
| Gross Profit | $69.23B |
| R&D Expenses | $10.89B |
| SG&A Expenses | $7.49B |
| Operating Expenses | $18.38B |
| Operating Income | $50.85B |
| Net Income | $42.10B |
| EPS (Basic) | $2.85 |
| EPS (Diluted) | $2.84 |
| Shares Outstanding (Basic) | 14.75B |
| Shares Outstanding (Diluted) | 14.81B |
Key Highlights
- 1Total net sales increased by 16% year-over-year to $143.76 billion.
- 2iPhone sales surged by 23% to $85.27 billion, driven by Pro models.
- 3Services revenue grew by 14% to $30.01 billion, fueled by advertising, the App Store, and cloud services.
- 4Net income increased by 16% to $42.10 billion, with diluted EPS rising to $2.84.
- 5Gross margin improved to 48.2% from 46.9%, driven by product mix and services, despite tariff impacts.
- 6Apple returned $28.9 billion to shareholders through $25.0 billion in share repurchases and $3.9 billion in dividends.
- 7Research and development expenses increased by 32% to $10.89 billion, reflecting continued investment in innovation.