Apple reported a 16% year-on-year increase in fiscal Q1 revenue, driven by “staggering” demand for the iPhone 17 Pro and its new 8x zoom camera feature. The company topped consensus forecasts and projected current-quarter revenue above Wall Street estimates, citing constrained supply rather than weak demand. All geographic segments contributed to growth, with Greater China sales up 38% year-over-year, marking Apple’s strongest performance in the region since 2021.

Gross margin expanded to 48.1% in the December quarter, up from 47.2% a year earlier, reflecting favorable product mix and tight cost controls. Services revenue held steady at roughly one-fifth of total revenue, in line with management guidance. Free cash flow reached $51.5 billion, enabling a shareholder return program that deployed $25 billion in buybacks and $3.5 billion in dividends during the quarter, while net cash on the balance sheet increased to $200 billion.

In a move described by CEO Tim Cook as a “tectonic shift,” Apple signed a multi-year agreement with Google to integrate the Gemini large-language model into iOS and macOS. The partnership will bring real-time AI capabilities—such as advanced Siri interactions and on-device computation—to hundreds of millions of devices. Analysts estimate this could add up to $5 billion in incremental services revenue over the next two years by enhancing user engagement and creating new paid AI features.