Apple beat Q1 expectations on a big iPhone quarter and a Greater China upside surprise, while services held steady and cash flow stayed strong.
Summary:
Apple delivered a clear beat on EPS and revenue, led by a standout iPhone quarter ("staggering demand").
iPhone revenue materially outperformed expectations, driving a strong products result overall.
Services was essentially in line, holding the narrative of steady, high-quality recurring revenue.
Greater China surprised to the upside versus expectations, a key swing factor for sentiment.
Cash generation remained powerful (operating cash flow ~US$54bn) and Apple declared a US$0.26 dividend.
Apple Tim Cook:
"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."
Apple posted a strong set of first-quarter FY2026 results, beating expectations on both earnings and revenue as iPhone demand carried the holiday-period quarter.
EPS came in at $2.84 versus $2.68 expected, while revenue printed at $143.76 billion versus $138.40 billion expected. The numbers point to a better-than-feared mix and margin outcome, even as operating expenses were a touch higher than consensus at $18.38 billion (vs $18.18 billion expected).
The key driver was iPhone. iPhone revenue reached $85.27 billion, well above the $78.31 billion estimate, lifting total products revenue to $113.74 billion (also ahead). By contrast, services revenue of $30.01 billion was essentially unchanged versus expectations, reinforcing the picture of steadier growth rather than a fresh upside surprise. iPad revenue beat estimates ($8.60 billion vs $8.18 billion), while Mac revenue missed ($8.39 billion vs $9.13 billion). Wearables, home and accessories also ran softer than expected at $11.49 billion.
Regionally, the Americas came in close to forecasts, but Greater China was the notable upside surprise at $25.53 billion versus $21.82 billion expected — likely to be one of the most discussed line items given recent investor sensitivity to China demand trends.
Apple also flagged ongoing scale in its ecosystem: the installed base surpassed 2.5 billion active devices. Cash generation stayed robust with operating cash flow around $54 billion, supporting continued capital returns, including a declared cash dividend of $0.26 per share.
Bottom line: this was an iPhone-led beat with steady services, a China upside surprise, and continued balance-sheet firepower — a combination that should keep the market focused on sustainability into the next quarters. (Apple’s fiscal Q1 results are discussed on its investor relations channels and earnings call schedule.)
