Apple has reported a record breaking financial performance, driven by massive demand for its latest iPhone line-up and steady growth across its services business. The company shared the results during its earnings call for Q1 2026, which ended on December 27, 2025, marking the most profitable quarter in its history.
The company posted total revenue of $143.8 billion for the quarter, reflecting a 16% increase compared to the same period last year. Net profit stood at $42.09 billion, highlighting strong consumer demand across Apple’s product portfolio. While several categories contributed to the growth, the iPhone remained the biggest driver, supported by solid sales momentum following the launch of the iPhone 17 series in September 2025.
iPhone revenue reached $85.27 billion during the quarter, making it the strongest iPhone quarter ever. Speaking to a news agency, CEO Tim Cook said demand for the new devices was “staggering.” He added, “The demand for iPhone was simply staggering, with revenue growing 23% year over year to achieve its biggest quarter in history.” Apple also gained market share in December, outperforming Android rivals across regions. However, Cook noted that rising RAM prices due to higher demand from AI data centres could impact margins in the future.
Beyond hardware, Apple’s ecosystem continued to expand. The company now has more than 2.5 billion active devices worldwide, a milestone that reflects strong customer loyalty. Tim Cook said, “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.” This growing user base has also boosted Apple’s services business.
Apple’s services division, which includes platforms like Apple TV and Apple Music, delivered all time high revenue of $30.01 billion, up 14% year on year. Looking ahead, Apple is preparing to launch AI powered Siri soon, possibly as early as February. The company has partnered with Google to use Gemini for the next generation of Siri and plans to eventually turn it into a chatbot, according to reports.
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