Apple reports first quarter results

CUPERTINO, Calif.--( BUSINESS WIRE)--Apple® today announced financial results for its fiscal 2026 first quarter ended December 27, 2025. The Company posted quarterly revenue of $143.8 billion, up 16 percent year over year. Diluted earnings per share was $2.84, up 19 percent year over year.

“Today, Apple is proud to report a remarkable, record-breaking quarter, with revenue of $143.8 billion, up 16 percent from a year ago and well above our expectations,” said Tim Cook, Apple’s CEO. “iPhone had its best-ever quarter driven by unprecedented demand, with all-time records across every geographic segment, and Services also achieved an all-time revenue record, up 14 percent from a year ago. We are also excited to announce that our installed base now has more than 2.5 billion active devices, which is a testament to incredible customer satisfaction for the very best products and services in the world.”

“During the December quarter, our record business performance and strong margins led to EPS growth of 19 percent, setting a new all-time EPS record,” said Kevan Parekh, Apple’s CFO. “These exceptionally strong results generated nearly $54 billion in operating cash flow, allowing us to return almost $32 billion to shareholders.”

Apple’s board of directors has declared a cash dividend of $0.26 per share of the Company’s common stock. The dividend is payable on February 12, 2026, to shareholders of record as of the close of business on February 9, 2026.

Apple will provide live streaming of its Q1 2026 financial results conference call beginning at 2:00 p.m. PT on January 29, 2026, at apple.com/investor/earnings-call. The webcast will be available for replay for approximately two weeks thereafter.

Apple periodically provides information for investors on its corporate website, apple.com, and its investor relations website, investor.apple.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and details related to its annual meeting of shareholders.

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about payment of the Company’s quarterly dividend and future business plans. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Risks and uncertainties include without limitation: effects of global and regional economic conditions, including as a result of government policies, trade and other international disputes, geopolitical tensions, conflict, terrorism, natural disasters, and public health issues; risks relating to the design, manufacture, introduction, and transition of products and services in highly competitive and rapidly changing markets, including from reliance on third parties for components, technology, manufacturing, applications, services, support, and content; risks relating to information technology system failures, network disruptions, and failure to protect, loss of, or unauthorized access to, or release of, data; and effects of unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements, which speak only as of the date they are made.

Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, AirPods, Apple Watch, and Apple Vision Pro. Apple’s six software platforms — iOS, iPadOS, macOS, watchOS, visionOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, iCloud, and Apple TV. Apple’s more than 150,000 employees are dedicated to making the best products on earth and to leaving the world better than we found it.

NOTE TO EDITORS: For additional information visit Apple Newsroom ( www.apple.com/newsroom), or email Apple’s Media Helpline at media.help@apple.com.

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In millions, except number of shares, which are reflected in thousands, and per-share amounts)

Three Months Ended

December 27,

2025

December 28,

2024

Net sales:

Products

113,743

97,960

Services

30,013

26,340

Total net sales (1)

143,756

124,300

Cost of sales:

Products

67,478

59,447

Services

7,047

6,578

Total cost of sales

74,525

66,025

Gross margin

69,231

58,275

Operating expenses:

Research and development

10,887

8,268

Selling, general and administrative

7,492

7,175

Total operating expenses

18,379

15,443

Operating income

50,852

42,832

Other income/(expense), net

150

(248

)

Income before provision for income taxes

51,002

42,584

Provision for income taxes

8,905

6,254

Net income

42,097

36,330

Earnings per share:

Basic

2.85

2.41

Diluted

2.84

2.40

Shares used in computing earnings per share:

Basic

14,748,158

15,081,724

Diluted

14,810,356

15,150,865

(1) Net sales by reportable segment:

Americas

58,529

52,648

Europe

38,146

33,861

Greater China

25,526

18,513

Japan

9,413

8,987

Rest of Asia Pacific

12,142

10,291

Total net sales

143,756

124,300

(1) Net sales by category:

iPhone

85,269

69,138

Mac

8,386

8,987

iPad

8,595

8,088

Wearables, Home and Accessories

11,493

11,747

Services

30,013

26,340

Total net sales

143,756

124,300

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In millions, except number of shares, which are reflected in thousands, and par value)

December 27,

2025

September 27,

2025

ASSETS:

Current assets:

Cash and cash equivalents

45,317

35,934

Marketable securities

21,590

18,763

Accounts receivable, net

39,921

39,777

Vendor non-trade receivables

30,399

33,180

Inventories

5,875

5,718

Other current assets

15,002

14,585

Total current assets

158,104

147,957

Non-current assets:

Marketable securities

77,888

77,723

Property, plant and equipment, net

50,159

49,834

Other non-current assets

93,146

83,727

Total non-current assets

221,193

211,284

Total assets

379,297

359,241

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Current liabilities:

Accounts payable

70,587

69,860

Other current liabilities

68,543

66,387

Deferred revenue

9,413

9,055

Commercial paper

1,997

7,979

Term debt

11,827

12,350

Total current liabilities

162,367

165,631

Non-current liabilities:

Term debt

76,685

78,328

Other non-current liabilities

52,055

41,549

Total non-current liabilities

128,740

119,877

Total liabilities

291,107

285,508

Commitments and contingencies

Shareholders’ equity:

Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 14,702,703 and 14,773,260 shares issued and outstanding, respectively

95,221

93,568

Accumulated deficit

(2,177

)

(14,264

)

Accumulated other comprehensive loss

(4,854

)

(5,571

)

Total shareholders’ equity

88,190

73,733

Total liabilities and shareholders’ equity

379,297

359,241

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

Three Months Ended

December 27,

2025

December 28,

2024

Cash, cash equivalents, and restricted cash and cash equivalents, beginning balances

35,934

29,943

Operating activities:

Net income

42,097

36,330

Adjustments to reconcile net income to cash generated by operating activities:

Depreciation and amortization

3,214

3,080

Share-based compensation expense

3,594

3,286

Other

(528

)

(2,009

)

Changes in operating assets and liabilities:

Accounts receivable, net

(153

)

3,597

Vendor non-trade receivables

2,781

3,166

Inventories

(211

)

215

Other current and non-current assets

(10,250

)

939

Accounts payable

848

(6,671

)

Other current and non-current liabilities

12,533

(11,998

)

Cash generated by operating activities

53,925

29,935

Investing activities:

Purchases of marketable securities

(12,693

)

(6,124

)

Proceeds from maturities of marketable securities

7,510

15,967

Proceeds from sales of marketable securities

2,824

3,492

Payments for acquisition of property, plant and equipment

(2,373

)

(2,940

)

Other

(154

)

(603

)

Cash generated by/(used in) investing activities

(4,886

)

9,792

Financing activities:

Payments for taxes related to net share settlement of equity awards

(2,922

)

(2,921

)

Payments for dividends and dividend equivalents

(3,921

)

(3,856

)

Repurchases of common stock

(24,701

)

(23,606

)

Repayments of term debt

(2,164

)

(1,009

)

Repayments of commercial paper, net

(5,910

)

(7,944

)

Other

(38

)

(35

)

Cash used in financing activities

(39,656

)

(39,371

)

Increase in cash, cash equivalents, and restricted cash and cash equivalents

9,383

356

Cash, cash equivalents, and restricted cash and cash equivalents, ending balances

45,317

30,299

Supplemental cash flow disclosure:

Cash paid for income taxes, net

3,434

18,651