Apple has reported a record-setting first quarter for fiscal year 2026, surpassing analyst expectations across revenue, profit and regional performance, and marking the strongest sales quarter in the company’s history.
For the three months ended December 27, 2025, Apple generated revenue of $143.8 billion, exceeding its previous all-time quarterly record of $124.3 billion set during the 2024 holiday quarter. Net profit rose sharply year over year to $42.1 billion, up from $36.3 billion in the same period a year earlier, also representing a new high for the company.
Total sales increased 16% year over year, making it Apple’s fastest-growing quarter since the post-pandemic rebound in 2021. Growth was primarily driven by strong demand for the iPhone and continued expansion of the Services segment.
iPhone revenue surged 23% to $85 billion, setting another record for the product line. Services revenue climbed 14% to $30 billion, reaching that level just three years after first surpassing $20 billion. In contrast, Apple’s other product categories showed limited momentum, with combined sales of Mac, iPad, Home and Wearables declining 1% year over year to $28.5 billion.
Apple also reported sales growth across all geographic regions. Greater China stood out with nearly 38% growth, signaling a notable turnaround after a prolonged period of weakness, during which sales in the region had declined in 10 of the previous 12 quarters.
Alongside its financial results, Apple disclosed that its installed base now exceeds 2.5 billion active devices worldwide, underscoring the scale of its ecosystem and its importance to long-term revenue generation. The expanding installed base continues to support growth in services such as payments, cloud storage, media subscriptions and other recurring offerings, which together generate more than $100 billion in annual revenue and carry significantly higher margins than hardware.
The company also highlighted the increasing adoption of its artificial intelligence features, positioning its devices as central platforms for on-device AI use. At the same time, Apple cautioned that supply constraints could pressure margins in coming quarters, citing anticipated shortages and rising prices for memory chips amid an AI-driven global data center expansion.
Overall, the results reinforce Apple’s ability to drive growth through its flagship products, services ecosystem and global reach, even as it navigates supply chain challenges and intensifying competition in emerging technology areas.
