Apple (AAPL) shares edged higher during early post-market trading on Thursday after releasing its first quarter fiscal 2026 financial results that were driven by record-breaking iPhone sales.
For the quarter ended December 31, Apple reported earnings per share of $2.84 versus the consensus estimate of $2.67.
Revenue for the quarter increased 15.7% to total $143.76B, which was more than the $138.52B estimate. Apple reported double-digit revenue growth across multiple business segments. Product revenue increased 16% to $107.7B, which was led by iPhone revenue surging 23% to $85.27B. Services revenue climbed 16% year over year to $30B.
Apple also received a bump from China, with sales growing by 38% year over year to $25.5B. The Americas led all regions with 11% revenue growth to $58.5B.
“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,” said Apple CEO Tim Cook. “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,” added Apple Chief Financial Officer. 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 reported its best quarter ever on Thursday afternoon, smashing street estimates for both revenues and earnings per share,” said Seeking Alpha analyst Bill Maurer. “Total revenues grew more than 15.6% thanks to a more than 23.3% surge in iPhone revenues, fueling strong margin improvement. The company generated a whopping $51.55 billion in free cash flow during the all-important holiday quarter, nearly double the year-ago period, sending shares higher in the after-hours session.”
Apple’s board of directors also declared a cash dividend of $0.26 per share of the company’s common stock.