Apple (AAPL) earnings report Q1 2026

Apple reported fiscal first-quarter earnings on Thursday that surpassed expectations, with income hovering 16% on an annual foundation.  

Shares of the corporate had been up as a lot as 3% in prolonged buying and selling.

Listed below are the outcomes versus what Wall Avenue was anticipating in response to LSEG consensus estimates for the quarter ending in December: 

• EPS: $2.84 vs. $2.67 estimated 
• Income: $143.76 billion vs. $138.48 billion estimated 

Right here is how Apple’s main product traces did versus LSEG consensus estimates:  

• iPhone income: $85.27 billion vs. $78.65 billion estimated
• Mac income: $8.39 billion vs. $8.95 billion estimated 
• iPad income: $8.60 billion vs. $8.13 billion estimated 
• Wearables, Residence, and Equipment income: $11.49 billion vs. $12.04 billion estimated 
• Companies income: $30.01 billion vs. $30.07 billion estimated
• Gross margin: 48.2% vs. 47.5% estimated 

Apple did not present formal steering, however finance chief Kevan Parekh often shares details about the present quarter’s outcomes on the earnings name. Analysts polled by LSEG expect $104.84 billion in second-quarter income. 

The corporate reported $42.10 billion in internet revenue, or $2.84 per diluted share, versus $36.33 billion, or $2.40 per diluted share, within the year-ago interval.  

Total iPhone income surged 23% on an annual foundation to $85.27 billion in income, which the corporate attributed to sturdy gross sales of the iPhone 17 fashions, which had been launched in September.  

“The demand for iPhone was simply merely staggering,” Apple CEO Tim Prepare dinner instructed CNBC’s Steve Kovach. 

The sturdy development is a reversal from the vacation quarter last year, when Apple reported iPhone gross sales that declined barely.

Prepare dinner stated Apple now has an energetic base of two.5 billion iPhones, Macs and different Apple units in use, up from 2.35 billion introduced in January final yr. That quantity is intently watched as a result of it indicators how huge the addressable market is for Apple’s companies, as nicely as for software program on the corporate’s platforms.  

Apple noticed significantly sturdy outcomes in China, together with Taiwan and Hong Kong. Gross sales within the area surged 38% throughout the quarter to $25.53 billion. Prepare dinner stated that the efficiency within the area was pushed by iPhone gross sales.  

“We set an all-time report for upgraders in mainland China, and we noticed double digit development on switchers,” Prepare dinner stated. Upgraders refers to present iPhone customers who purchased newer fashions, and switchers means new clients who beforehand had telephones from totally different manufacturers.  

In China, Apple “noticed a raise that, frankly, was a lot better than we thought we’d see,” Prepare dinner stated, including that it was “product-driven. 

Apple’s gross sales of Mac laptops got here up wanting Wall Avenue expectations, and fell 7% on an annual foundation. The corporate launched an up to date MacBook Professional laptop computer with a brand new M4 chip in November.

The iPad enterprise grew 6% within the quarter on an annual foundation to $8.6 billion in income, beating expectations. Prepare dinner stated that half of the individuals who purchased an iPad throughout the quarter had not beforehand owned one.  

Apple experiences AirPods, Apple Watch, Imaginative and prescient Professional and different equipment in a class referred to as Wearables, Residence and Equipment. These gross sales fell 2% on an annual foundation, and missed Wall Avenue estimates.  

Apple’s companies enterprise consists of subscriptions comparable to Apple TV and iCloud in addition to promoting income from licensing agreements with Google, AppleCare warranties and different choices. It grew 14% on an annual foundation to $26.34 billion in gross sales. Prepare dinner stated Apple TV’s viewership rose 36% in December on an annual foundation. 

Earlier this month, the corporate announced it could accomplice with Google to make use of its Gemini AI mannequin to energy Apple Intelligence software program. Apple has spent a lot much less on synthetic intelligence expertise than its friends, comparable to Meta and Microsoft, which have dedicated to spending a whole lot of billions on AI infrastructure.  

“We now have completely the very best platforms on this planet for AI,” Prepare dinner stated.  

Apple spent $2.37 billion on capital expenditures throughout the quarter, down from $2.94 billion in the identical interval final yr. However analysis and improvement bills elevated to $10.89 billion from $8.27 billion within the year-ago interval.  

“AI goes to require incremental funding on high of our regular product roadmap funding,” Parekh stated. 

All of Apple’s units, together with the iPhone, Mac and iPad use a whole lot of storage and reminiscence, elevating questions on how the corporate plans to deal with elevated element prices as reminiscence costs world wide are surging due to an AI-related shortage.  

Parekh stated that Apple spent almost $32 billion within the quarter on share repurchases and dividends. 

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