Apple reported fiscal Q1 2026 revenue of $143.8 billion, a 16 percent increase year-over-year, driven by robust holiday iPhone sales and accelerating services revenue. Gross margin expanded to 48.2 percent, its highest level in four years, reflecting a premium product mix and disciplined cost management. Product gross margin reached 40.7 percent, significantly above recent quarterly averages. Management guided for continued margin improvement in Q2, underscoring confidence in supply chain resilience despite ongoing memory cost pressures.

iPhone net sales grew 23 percent year-over-year, marking Apple’s first mid-teen revenue growth rate in 16 quarters. Demand was particularly strong in Greater China, where iPhone revenue surged 38 percent, and India, where double-digit growth continued as the company deepened its local manufacturing footprint. The new handset’s advanced features and expanded financing partnerships with regional carriers supported the outsized gains in these strategic markets.

Apple’s services business rose 14 percent year-over-year, with a gross margin of approximately 76.5 percent, as subscription offerings and App Store monetization hit new records. The installed device base surpassed 2.5 billion active devices for the first time, providing a vast cross-sell runway for Apple Intelligence features. Management emphasized that AI-powered personalization—tightly integrated into iOS—is enhancing customer engagement and positioning the company to unlock incremental hardware and services revenue over the coming quarters.