Apple has entered a multi-year agreement with Google to integrate Gemini models into Siri, marking the company’s first external AI foundation model partnership. Under the deal, Apple will pay Google an estimated several billion dollars over the life of the arrangement in exchange for access to Gemini’s large-scale language capabilities. This move follows internal evaluations of Anthropic and OpenAI, which were ultimately declined due to pricing terms and competitive dynamics. The Gemini-powered Siri is expected to roll out in spring 2026, offering conversational queries and context-aware responses that leverage users’ on-device data while maintaining Apple’s privacy standards.

Analysts forecast Apple will report holiday-quarter results on Jan. 29, with consensus estimates projecting 10%–12% year-over-year revenue growth driven by resilient iPhone 17 demand in the U.S. and China, and double-digit expansion in Services. Despite expectations of a record December quarter, some market participants caution that growth may decelerate toward 6% over the remainder of fiscal 2026 as subsidy-driven upgrades in China wane and U.S. consumer spending faces pressure from inflation and labor market softness. Operating margin forecasts center around the low- to mid-30% range, factoring in higher memory and component costs as well as tariff uncertainties.

During the trailing twelve months, Apple has deployed virtually all of its operating cash flow—estimated at over $120 billion—to repurchases, buying back shares at premium valuations to boost earnings per share. The current repurchase authorization stands at $90 billion, with more than 80% of that capacity still available. This aggressive buyback strategy supports near-term EPS growth, though some investors question whether directing additional cash to R&D or strategic M&A, particularly in AI and services, could better underpin sustainable long-term returns.