Apple posted record first-quarter earnings on January 29, driven by strong iPhone demand and broad-based revenue growth across most regions.
The company reported $143.8 billion in revenue for the quarter ending December 27, 2025, representing a 16% year-over-year increase. Net income rose to $42.1 billion, while diluted earnings per share came in at $2.84, beating market expectations.
iPhone revenue climbed 23% to $85.3 billion, marking the strongest iPhone quarter in Apple’s history. Services revenue also hit a record, rising to $30.0 billion, supported by higher subscription and usage levels. Apple also reported its best-ever iPhone quarter in Greater China, with regional revenue up 38% year over year.
Despite the strong results, some analysts remained cautious due to limited guidance on rising memory and component costs, which could pressure margins later in the year.
Bank of America said the earnings point to a global upgrade cycle, with improving demand in China helping offset higher raw material costs.
Apple declared a quarterly dividend of $0.26 per share and ended the quarter with $54 billion in net cash. The company returned $3.9 billion in dividends and repurchased $25 billion worth of shares.
For the March quarter, Apple expects revenue growth of 13% to 16%, with gross margins projected between 48% and 49%.
CEO Tim Cook said Apple’s active installed base surpassed 2.5 billion devices, a new company record, and highlighted growing adoption of Apple Intelligence.
Apple also confirmed a multi-year partnership with Google to integrate Gemini-based AI technology into its future foundation models, as the company seeks to strengthen its position in the AI race.
While analysts largely welcomed the earnings, concerns over long-term memory pricing and competition in artificial intelligence weighed on investor sentiment, contributing to volatility in Apple’s share price following the report.