Apple | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 143.76 B

Revenue: As of FY2026 Q1, the actual value is USD 143.76 B, beating the estimate of USD 138.52 B.

EPS: As of FY2026 Q1, the actual value is USD 2.84, beating the estimate of USD 2.6708.

Overall Financial Performance

苹果 (Apple Inc.) reported total net sales of $143,756 million for the three months ended December 27, 2025, an increase from $124,300 million in the same period of 2024. Total cost of sales was $74,525 million in 2025, up from $66,025 million in 2024. Gross margin increased to $69,231 million in 2025 from $58,275 million in 2024, with the total gross margin percentage rising to 48.2% from 46.9%. Operating expenses totaled $18,379 million in 2025, compared to $15,443 million in 2024. Operating income was $50,852 million in 2025, an increase from $42,832 million in 2024. Net income for the period was $42,097 million, up from $36,330 million in the prior year.

Segment Revenue

Americas: Net sales increased to $58,529 million in 2025 from $52,648 million in 2024, primarily driven by higher iPhone and Services net sales.
Europe: Net sales grew to $38,146 million in 2025 from $33,861 million in 2024, primarily due to higher iPhone and Services net sales, with a favorable impact from foreign currency strength.
Greater China: Net sales significantly increased to $25,526 million in 2025 from $18,513 million in 2024, attributed to higher iPhone net sales.
Japan: Net sales rose to $9,413 million in 2025 from $8,987 million in 2024, mainly due to higher iPhone and iPad net sales, despite an unfavorable impact from yen weakness.
Rest of Asia Pacific: Net sales increased to $12,142 million in 2025 from $10,291 million in 2024, primarily due to higher iPhone and Services net sales.

Segment Operating Income

Americas: Operating income was $23,953 million in 2025, up from $21,509 million in 2024.
Europe: Operating income was $17,790 million in 2025, up from $14,607 million in 2024.
Greater China: Operating income was $11,792 million in 2025, up from $8,160 million in 2024.
Japan: Operating income was $4,613 million in 2025, up from $4,314 million in 2024.
Rest of Asia Pacific: Operating income was $5,686 million in 2025, up from $4,584 million in 2024.
Corporate: Operating loss was -$12,982 million in 2025, compared to -$10,342 million in 2024.

Product and Service Performance

iPhone: Net sales increased to $85,269 million in 2025 from $69,138 million in 2024, driven by higher net sales of Pro models.
Mac: Net sales decreased to $8,386 million in 2025 from $8,987 million in 2024, primarily due to lower net sales of laptops and desktops.
iPad: Net sales increased to $8,595 million in 2025 from $8,088 million in 2024, primarily due to higher net sales of iPad and iPad Pro, partially offset by lower iPad mini® sales.
Wearables, Home and Accessories: Net sales decreased to $11,493 million in 2025 from $11,747 million in 2024, mainly due to lower net sales of Wearables.
Services: Net sales increased to $30,013 million in 2025 from $26,340 million in 2024, primarily due to higher net sales from advertising, the App Store®, and cloud services.

Operational Costs

Research and Development (R&D): R&D expense increased to $10,887 million in 2025, up from $8,268 million in 2024, driven by infrastructure costs, headcount expenses, and engineering program costs.
Selling, General and Administrative (SG&A): SG&A expense increased to $7,492 million in 2025, up from $7,175 million in 2024, driven by headcount-related and variable selling expenses.

Cash Flow and Liquidity

Cash generated by operating activities: $53,925 million in 2025, compared to $29,935 million in 2024.
Cash used in investing activities: -$4,886 million in 2025, compared to cash generated of $9,792 million in 2024.
Cash used in financing activities: -$39,656 million in 2025, compared to -$39,371 million in 2024.
Cash and cash equivalents: $45,317 million as of December 27, 2025, up from $35,934 million as of September 27, 2025.
Marketable securities: $21,590 million (current) and $77,888 million (non-current) as of December 27, 2025.

Capital Return Program

Share Repurchases: 苹果 (Apple Inc.) repurchased 93 million shares of its common stock for $25.0 billion during the first quarter of 2026.
Dividends: The company paid dividends and dividend equivalents of $3.9 billion during the first quarter of 2026, with a quarterly cash dividend of $0.26 per share.

Other Key Metrics

Deferred Revenue: Total deferred revenue was $14.3 billion as of December 27, 2025, with 66% expected to be realized in less than a year.
Unrecognized RSU Compensation: Total unrecognized compensation cost related to outstanding RSUs was $31.5 billion, expected to be recognized over a weighted-average period of 2.9 years.
Unconditional Purchase Obligations: 苹果 (Apple Inc.) had $44.4 billion in manufacturing purchase obligations, with $43.7 billion due within 12 months, and $35.1 billion in other purchase obligations, with $9.3 billion due within 12 months, as of December 27, 2025.

Outlook and Strategy

苹果 (Apple Inc.) anticipates that its current cash balances, cash generated from operations, and access to debt markets will be sufficient to cover its cash requirements and capital return program for the next 12 months and beyond. The company plans to increase its dividend annually, subject to Board approval. However, 苹果 (Apple Inc.) notes that its future gross margins are susceptible to volatility and potential downward pressure from various factors.