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 across all geographic segments.

• Net income was $42.1 billion, up 16% year-over-year, and diluted EPS reached $2.84, up 19% year-over-year, both all-time records.

• Installed base surpassed 2.5 billion active devices, with strong double-digit growth in emerging markets like India and Greater China.

• Services revenue reached an all-time high of $30 billion, up 14% year-over-year, with records in both developed and emerging markets.

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

Financial highlights

• Gross margin was 48.2%, up from 46.9% year-over-year and above guidance.

• iPhone revenue grew 23% year-over-year to $85.3 billion, setting all-time records in every geographic segment.

• Services revenue increased 14% to $30.0 billion, with growth in advertising, App Store, and cloud services.

• Operating income reached $50.9 billion, up from $42.8 billion year-over-year.

• Operating cash flow reached an all-time record of nearly $54 billion.

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 December quarter.

• Gross margin guidance for March quarter is 48%-49%; operating expenses expected between $18.4 billion and $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.