Apple (AAPL) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $143.8 billion, up 16% year-over-year, with all-time highs in iPhone and Services revenue and EPS of $2.84, up 19% year-over-year.

• iPhone revenue surged 23% year-over-year to $85.3 billion, driven by strong demand and record upgraders, especially in Greater China and India.

• Services revenue reached an all-time high of $30 billion, up 14% year-over-year, with records in advertising, music, payment, and cloud services.

• Installed base surpassed 2.5 billion active devices, reflecting high customer satisfaction across all product lines.

• New product launches included the 14-inch MacBook Pro, iPad Pro, and Apple Vision Pro.

Financial highlights

• Net income was $42.1 billion, up from $36.3 billion year-over-year, and operating income reached $50.9 billion.

• Gross margin was 48.2%, up from 46.9% year-over-year, and operating cash flow reached nearly $54 billion.

• Operating expenses were $18.4 billion, up 19% year-over-year, mainly due to increased R&D investment.

• Returned nearly $32 billion to shareholders, including $3.9 billion in dividends and $25 billion in share repurchases.

• Diluted EPS was $2.84, up from $2.40 in the prior year quarter.

Outlook and guidance

• March quarter revenue expected to grow 13%-16% year-over-year, factoring in iPhone supply constraints.

• Services revenue growth rate expected to be similar to the December quarter.

• Gross margin guidance between 48%-49%; operating expenses projected at $18.4-$18.7 billion.

• Board declared a $0.26 per share dividend, payable February 12, 2026.

• Management expects continued volatility in gross margins due to product mix, tariffs, and macroeconomic factors.