Record iPhone sales lead Apple to its best quarter of all time

Apple held its first quarter 2026 financial results on Thursday, and the company posted revenue of $143.8 billion, a 16 percent year-over-year increase, and quarterly diluted earnings per share of $2.84, up 19 percent, with $42 billion in profit. Apple’s previous all-time record quarter was exactly a year ago.

Analysts had projected Apple’s revenue at $138.48 billion, with an earnings per share of $2.67, so this was a substantial beat. Apple’s board of directors has declared a cash dividend of $0.26 per share. The dividend is payable on February 12, 2026, to shareholders of record as of the close of business on February 9, 2026.

The iPhone had its best quarter ever, with $85 billion, beating the previous record of $71.6 billion set in the first quarter of 2022. “iPhone had its best-ever quarter driven by unprecedented demand, with all-time records across every geographic segment,” said CEO Tim Cook in a press release. During a conference call with investors, Cook noted that the company saw double-digit growth with users switching over to iPhone.

Mac sales were down 7 percent year-over-year, which isn’t surprising since Apple released only one new Mac for the quarter, the M5 MacBook Pro, versus five new models last year. However, Cook stated that the Mac has its largest installed base ever, and in this past quarter, nearly half of those who bought a Mac were switching from another platform.

Services had a record quarter with an increase of 15 percent, and has firmly established itself as Apple’s second-largest revenue generator. “Apple TV has seen fantastic momentum, with December seeing a 36 percent increase in viewership over the previous year,” said Cook, who also said that “Apple Music climbed to all-time highs in both listenership and new subscriber growth.”

The iPad saw an increase of 8 percent, while Services had another great quarter with an increase of 15 percent. Apple’s sales for Wearables, Home, and Accessories saw a slight 2 percent decrease.

Apple stated that the company now has 2.5 billion activated devices, a new record.

The RAM price increases that the market has been experiencing did not affect Apple for the first quarter, Cook noted during a conference call for investors. However, he said Apple is now “in a supply chase mode,” and is experiencing supply constraints like the rest of the industry.

Despite those supply chain issues, however, Apple expects its second-quarter 2026 total company revenue to grow by 13 to 16 percent year-over-year–in Q2 2025, Apple reported revenue of $95.4 billion. Apple’s estimates include considerations for “constrained iPhone supply during the quarter,” said CFO Kevan Parekh. Apple also expects Services revenue to continue to grow at the rate experienced in the first quarter, so roughly 10-15 percent.