Apple’s Record-Setting Quarter
Apple (NASDAQ: AAPL) reported a record revenue of $143.8 billion for its fiscal 2026 first quarter, ending December 27, which marks a 16% year-over-year growth—the highest since 2021. Diluted earnings per share reached an all-time high of $2.84, up 19%, surpassing analyst expectations of $138.5 billion in revenue and $2.67 EPS.
The surge in revenue was primarily driven by “staggering” iPhone sales, which increased by 23% year-over-year. In China, Apple saw a record performance, leading the market with 22% of smartphone shipments in the last three months of 2025 and marking the best iPhone quarter ever there. Additionally, Apple’s gross profit margin improved to 48.1%, attributed to users opting for higher-priced iPhone models, and the services segment reached an all-time record with $30 billion in revenue, up 14%.
In a strategic move, Apple also announced its acquisition of AI startup Q.ai for approximately $2 billion, aiming to bolster its presence in the artificial intelligence sector.
