10-QPeriod: Q1 FY2026

Apple Inc. Quarterly Report for Q1 Ended Dec 27, 2025

Filed January 30, 2026For Securities:AAPL

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
Beta

Revenue

$143.76B

48.2% Gross Margin

Net Income

$42.10B

29.3% Net Margin

EPS (Diluted)

$2.84

Total Assets

$379.30B

Cash & Equivalents

$45.32B

Free Cash Flow

$51.55B

Financial Statements
Beta
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.

Frequently Asked Questions

The primary driver of Apple's revenue growth was a significant increase in iPhone sales, which grew by 23% year-over-year, particularly driven by strong performance from its Pro models. The Services segment also contributed substantially with a 14% increase in revenue.

Apple's gross margin improved to 48.2% from 46.9% in the prior year. This improvement was attributed to a favorable product mix and the growth in higher-margin Services. However, the company noted that tariff costs partially offset these gains.

Apple continues its robust capital return program. In this quarter, the company repurchased $25.0 billion of its common stock and paid $3.9 billion in dividends and dividend equivalents. Apple also intends to increase its quarterly dividend annually, subject to board approval.

The filing mentions ongoing legal proceedings, including investigations related to the EU Digital Markets Act and a civil antitrust lawsuit filed by the U.S. Department of Justice. Macroeconomic conditions, such as inflation and currency fluctuations, as well as potential tariffs and trade disputes, are also noted as factors that could materially impact the company's results.