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Apple today announced financial results for its fiscal 2026 first quarter ended December 27, 2025. The Company posted quarterly revenue of $143.8 billion, up 16 percent year over year. Diluted earnings per share was $2.84, up 19 percent year over year.

According to LSEG consensus estimates compiled from Wall Street analysts called for Apple to post revenue of $138.48 billion and earnings per share (EPS) of $2.67. (Apple’s Q125 results: $124.3 billion in revenue and $2.40 EPS.)

“Today, Apple is proud to report a remarkable, record-breaking quarter, with revenue of $143.8 billion, up 16 percent from a year ago and well above our expectations,” said Tim Cook, Apple’s CEO, in a statement. “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. 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.”

• $85.269 billion (vs. $69.138 billion YoY)
• $8.386 billion (vs. $8.987 billion YoY)
• $8.595 billion (vs. $8.088 billion YoY)
• $11.493 billion (vs. $11.747 billion YoY)
• $30.013 billion (vs. $26.340 billion YoY)

“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,” said Kevan Parekh, Apple’s CFO, in a statement. “These exceptionally strong results generated nearly $54 billion in operating cash flow, allowing us to return almost $32 billion to shareholders.”

Apple’s board of directors has declared a cash dividend of $0.26 per share of the Company’s common stock. The dividend is payable on February 12, 2026, to shareholders of record as of the close of business on February 9, 2026.

Apple will provide live streaming of its Q1 2026 financial results conference call beginning at 2:00 p.m. PT on January 29, 2026, at apple.com/investor/earnings-call. The webcast will be available for replay for approximately two weeks thereafter.

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Source link: https://macdailynews.com/2026/01/29/apple-destroys-the-street-with-all-time-record-q1-revenue-of-143-8-billion/

Consensus estimates project Apple to report approximately $138.4 billion in revenue for the December quarter (fiscal Q1 2026), along with both GAAP and non-GAAP earnings per share (EPS) of around $2.67. These figures reflect at least 11% year-over-year growth in both revenue and EPS.

However, analysts have recently become more cautious on margins, adjusting forecasts downward despite positive momentum in iPhone sales and Apple’s AI initiatives.

In a client note, Morgan Stanley analyst Erik Woodring expressed confidence that Apple will surpass expectations, primarily due to stronger and more sustained demand for the iPhone. Citing supply-chain data and shipment checks, Woodring forecasts December-quarter revenue of $139.8 billion, with the iPhone contributing $80.2 billion, and services totaling $29.9 billion.

Aparajita Chatterjee for The Street:
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He said iPhone 17’s “strength remains underappreciated by the Street.”

Morgan Stanley sees cost assumptions as overly optimistic. The firm forecasts March-quarter operating expenses about 7% above consensus and a gross margin forecast 30 basis points below consensus, driven by rising memory costs…

All things considered, Morgan Stanley believes Apple is positioned to outperform in 2026 as a wave of new products and AI-driven catalysts is set to shape the company’s growth trajectory. The firm particularly highlighted the relaunch of Siri in February and Apple Intelligence in June at Apple’s Worldwide Developers’ Conference (WWDC).

Some notable introductions expected include its most “innovative iPhone in 10+ years (Foldable)“, plus the first smartphone powered by 2-nanometer chips, part of the iPhone 18 family.

The firm sees greater benefits from share gains and higher average selling prices, with Morgan Stanley underscoring an EPS of $9.77 for FY2027, roughly 7% above Wall Street consensus.

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Apple and, indeed, the entire U.S. economy, are primed to roar in 2026!

As usual, we’ll bring you Apple’s results as soon as they are released, right around 1:30 p.m. PT / 4:30 p.m. ET on Thursday, January 29, 2026 and then follow with live notes from Apple’s conference call at 2:00 p.m. PT / 5:00 p.m. ET.

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Source link: https://macdailynews.com/2026/01/27/morgan-stanley-expects-apples-earnings-to-beat-expectations/