Apple has reported its Q1 2026 earnings, and CEO Tim Cook is expected to speak to investors (and all of us) about the latest from the Cupertino company.
Before the call, Apple's report came out revealing that the company made $143.8 billion in revenue, which is up 16 percent year over year and well above the company's expectations.
Earnings calls are designed primarily for those with Apple shares, but they often reveal much more than balance sheets. Apple's discussion could cover AI strategy, infrastructure priorities, and perhaps even some hardware teasers; you never know quite what to expect, and that's what makes it fun. And now that the earning numbers are out, we can assume the feeling on the call with be positive.
That’s where Tom’s Guide comes in. We dig through the investor-focused news and dig out what matters to us, the tech and Apple fans.
Apple earnings: By the numbers
- Apple's net income was $42 billion, up from $36 billion year over year.
- iPhone net sales $85 billion up from $69 billion year over year.
- Services revenue hit an all-time record of $30.01 billion, up 14% over the previous period. This increase in growth consists of the App Store, Apple Music, iCloud, and payment services.
- iPad revenue rose to $8.6 billion, an increase of 6.3%, driven largely by the M5-powred iPad Pro.
- Mac revenue dropped to $8.39 billion, which represents a 6.7% decline.
- Revenue from wearables, home, and accessories fell slightly down 2.2% to $11.49 billion.
Apple's stock today
- At market open, Apple's stock is trading at $256.44 per share
- At market close, Apple's stock ended at $258.28 per share
When is the Apple Q1 2026 earnings call?
Apple will broadcast its earnings call live at 5 p.m. ET (2:00 p.m. PT).
How to listen live
While we're here to live blog the earnings calls with the latest information as it emerges, you might want to listen for yourself (if you're a shareholder in Apple, you almost certainly want to hear what's going on).
Here's the link to listen as Tim Cook and the rest of the executives report what happened in the most recent quarter:
Apple Q1 2026 earnings live webcast
Apple Q1 earnings call — live updates
What to expect
Today's earnings call is expected to focus primarily around iPhone sales and the company's AI plans. During the previous earnings call covering Apple's fiscal Q4, Tim Cook said he expects Q1 to be the "best-ever for the company and the best ever for iPhone." Considering some of the massive sales quarters the iPhone has enjoyed in the past, that's a lofty claim.
And let's not forget that Apple announced it'll use Google’s Gemini models and cloud technology for its AI products, which includes the new Siri we've heard about for some time.
Of course, there will be plenty of talk about how much money the company made, how much it spent and how much it's paying to shareholders, but we're here for the juicier tidbits and that's what we'll be hunting.
All eyes are on iPhone 17 sales during the busy holiday season
Apple has been on autopilot ever since the release of the iPhone 17 last fall. In fact, its Q4 earnings results hit a record high, with Tim Cook himself noting 'very strong demand' for the latest models.
What’s interesting about that Q4 report is that it included only a couple of weeks of sales data, as the fiscal quarter ended on September 27 — just eight days after the iPhone 17’s September 19 launch.
The upcoming Q1 earnings report will be the real test, revealing exactly how successful Apple was during the critical holiday season. In retail, this is the 'make-or-break' period due to the massive surge in traffic that brick-and-mortar stores typically receive
Apple's popular gadgets could become more expensive this year
While the Q1 earnings call will uncover Apple's profitability during the critical holiday period, it'll be interesting to see if the company will shed light around components costs with its future releases.
One rumor suggested that Apple’s long-term agreement for DRAM chips would be coming to an end starting this month. Considering that its earnings call is happening later today, it could be a chance to ease investor worries about the RAM price crisis.
With prices surging, it could inherently make many of Apple's popular gadgets more expensive to produce — which could ultimately hit consumers in the wallet with higher price points on gadgets like the iPhone 18 and new MacBooks.
Should Apple be worried about entering the foldable market?
Apple continues to dominate the market with its iPhone 17 lineup, but 2026 is shaping up to be a pivotal year as the company reportedly enters new territory. We are referring to the long-rumored foldable iPhone — an area where key rivals like Samsung and Motorola have been developing and releasing their models for years.
There have been numerous leaks regarding the iPhone Fold, with the latest details hinting at a notebook-style device featuring a 5.3-inch outer screen that unfolds into a massive 7.8-inch display. With the recent success of the Galaxy Z Fold 7, Apple cannot afford a tepid entry into the category.
For enthusiasts and investors alike, the big question remains: will 2026 finally be the year of the iPhone Fold?
Where does the Apple Vision Pro fall in its future plans?
Apple could find itself at a crossroads when it releases its Q1 earnings report later today. That's because the company's most ambitious hardware in years, the Apple Vision Pro, hasn't quite been the revenue driver like its other product line.
The mixed reality headset is definitely the elephant in the room after a report indicated that it was losing production support. All throughout last year, rumors were rampant about an Apple Vision Pro 2, but with the release of the M5 version last October, it's highly unlikely that it'll sustain this product line.
Whether it's the state of the economy in the last year to blame, or its obscene cost to begin with, it begs the question of where Apple sees the Vision Pro. Rather, Apple could be dropping it entirely in favor of smart glasses like Meta's Ray-Ban Display.
iPhone Air vs iPhone 17 — earnings report could shed light on sales
Apple seemingly did everything right with the iPhone Air. Not only is it thinner than its biggest rival, the Galaxy S25 Edge, but it remains a powerhouse thanks to its speedy A19 Pro chip. However, that thinness came with some compromises.
That's why it will be interesting to see how well it sold over the holiday season. "I would be surprised if Apple sold more of the iPhone Air than the iPhone 17," explains Tom's Guide editor John Velasco. He goes on to say that there is more value in the iPhone 17, evident in its dual-camera system and much longer battery life.
Knowing this, it makes one wonder if there is enough interest in a device as slim as the iPhone Air when it requires such significant trade-offs. Our iPhone Air vs iPhone 17 face-off goes deeper into how these two models compare to one another.
iPhone 18 price
While Apple won't reveal the iPhone 18's price, the numbers could give us an idea of whether the company is in a good position to keep the price the same, as reported.
If iPhone sales are going as well as we expect and the company is rolling in cash, Apple might be able to stomach the memory cost crisis.
Will Apple mention iOS changes?
We just recently learned about iOS 26.3 and what it brings to the table, which makes me wonder if Apple has any little tidbits to reveal about the future of its mobile operating system during the earnings call. While we don't expect any major announcements — that's not what these earnings calls are for — it's possible that Apple gives us a hint while talking about the success of its software.
New Siri will be big
Apple needs to get it right with the new Siri. With competitors deploying powerful AI chatbots, Apple's once-industry-leading assistant feels dated. For Apple's stock price to rise to expected heights, Apple needs the new Siri to take off, along with the foldable iPhone.
Erik Woodring, analyst for Morgan Stanley, said he expects lower stock price action after earnings on Thursday, but his long-term prospects are looking positive.
"Looking beyond the short-term, we continue to believe Apple will outperform in 2026 as it re-launches an upgraded Siri/Apple Intelligence (February '26 and WWDC 2026 in June), introduces its most innovative iPhone in 10+ years (Foldable), becomes first to market with a 2nm-powered smartphone (iPhone 18 family)," Woodring wrote in a client note on Monday.
The key items are all in place, and we fully expect Apple to have a solid launch for the 2nm iPhone chips and foldable phone. But Siri remains a question mark based on the launch of Apple Intelligence.
Projected revenue
The projected revenue for Apple today is $138.4 billion with $107.69 billion of that coming from prioducts.
Focus on AI and iPhone sales
According to Yahoo News, Apple will focus on iPhone 17 sales and what the company is doing with AI heading forward.
Recently, Google and Apple partnered to bring Gemini models to Siri, which should debut this year.
We probably won't learn more specifics about this until WWDC in June though.
Memory shortage
As earnings calls take place this week, much of the focus will be on numbers and how they did or didn't go up.
But there does seem to be a lack of discussion regarding the global memory storage, or RAMageddon.
Apple has seemingly been unscathed by the RAM crisis even as reports are popping saying that even Apple can't leverage better RAM for iPhones from companies like Samsung.
New HomePods were a no-show in 2025, but what about 2026?
Apple’s smart home devices haven't received much attention lately, with only a minor software rollout announced during the fall iPhone 17 event. While there were rumors of new hardware, such as a HomePod 3 with a built-in display, those have yet to come to fruition.
With Apple expected to share its Q1 2026 earnings report later today, we may gain more insight into sales of its current smart home lineup — and just how much that category contributes to Apple's total revenue for the period.
Broadly speaking, the smart home market appears to be in a slump. Rivals like Google and Samsung haven't been particularly aggressive in releasing new products for the category recently.
Price of Apple TV Plus subscription increased in 2025 — what impact will it have?
Apple TV Plus delivered stellar content throughout 2025, including fan favorites like the second season of "Severance" and the Brad Pitt-led film "F1," which broke viewership records for the service.
While hardware like the iPhone 17, iPad Pro M5, and MacBook lineup makes up the majority of Apple's revenue, there could be surprising growth within its streaming segment. The company doesn't disclose specific subscriber counts for Apple TV Plus, as the platform is typically lumped into its broader Services category. What's fascinating is that its Services revenue reached a new all-time high in the Q4 2025 earnings report.
Naturally, investors will be watching closely to see if that momentum continues in today's Q1 2026 results
Apple ditched the Plus for the Air — was it the right move?
Apple said goodbye to the iPhone Plus last year, replacing it with the sleeker iPhone Air. During its iPhone 17 event last September, Apple spent a great deal of time devoted to talking about the iPhone Air — with the hope it would spur consumers to buy it.
However, things get complicated because of its higher $999 price point. In comparison, the iPhone 16 Plus launched at $899. You might think that $100 difference would give the edge to the iPhone Air, but considering how it compromises with a single rear camera and less room to carry a larger battery, it does make you wonder if it would've had the same level of appeal if Apple also had an iPhone 17 Plus in its lineup.
What's the future with Apple Intelligence?
On the horizon, Apple is expected to tap Google’s Gemini to finally bring 'Siri 2.0' closer to reality. While Apple Intelligence was a key focus last year, it didn't capture the same consumer attention during the most recent hardware cycle.
At WWDC 2025, Apple unveiled many updates within iOS 26, yet new Apple Intelligence features remained minimal. In comparison, Google pressed down hard on the accelerator to bring advanced AI features to its Pixel 10 lineup.
We’ve put Apple Intelligence to the test — specifically its new Call Screening feature — and compared it to the Pixel 10’s version. It’s now evident that Apple Intelligence is desperate for more meaningful features, and hopefully Apple will soon shed more light on its long-term ambitions.
Galaxy Z Fold 7 success forces Apple into the spotlight
Samsung has been making foldable phones for a long time now. Yet, it took until the Galaxy Z Fold 7 to prove that consumers are actually willing to spend the money on a pricey foldable device. Samsung reported record-breaking pre-orders for the Fold 7, which forces the spotlight back to Apple.
While we are still waiting for official word from Apple regarding its foldable ambitions, growing iPhone Fold leaks suggest 2026 could finally be the year we see it. However, Apple faces an uphill battle given the benchmark set by the Galaxy Z Fold 7.
Not only will Apple have to contend with that phone's successor later this year, but a more pressing challenge looms with the release of Samsung’s innovative Galaxy Z TriFold.
Apple's stock closed at $258.28
Apple's stock value is up after the closing bell, sitting at $258.28. However, it will be interesting to see how the price reacts between now and tomorrow morning when the Nasdaq reopens for trading. Obviously, the stock could increase dramatically depending on what the Q1 2026 earnings report reveals.
Q1 earnings report matters most — here's why
Most people would think Q4 earnings matter the most, but for Apple, it’s actually the Q1 report that carries the most weight.
That's because the Q1 2026 earnings will reveal Apple's performance during the busiest time of the year: the holiday season.
For tech companies like Apple that rely heavily on the revenue their devices generate, a profitable Q1 provides a strong foundation for the rest of the fiscal year.
Apple releases Q1 2026 earnings report — all-time revenue record
And just like that, Apple dropped its Q1 2026 earnings report, showing big financial gains for the company. Total revenue reached $143.8 billion, which is an all-time record and, more importantly, a 16% year-over-year increase. Earnings per share is also up at $2.84, another record that represents a 19% increase over last year
iPhone sales are a big driver to Apple's bottom line
It was a strong quarter for the iPhone, which generated $85.27 billion in revenue for the three months ending December 27, 2025. This represents a staggering 23.3% year-over-year increase.
The popularity of the iPhone is further substantiated by the fact that it accounted for approximately 59.3% of Apple's total net sales. While that is positive news, the report also reveals revenue declines in other hardware categories, such as the MacBook and wearables.
MacBook revenue declines
While iPhones were clearly the hot commodity for the crucial holiday period, Apple saw a decline in its MacBook revenue. It fell to $8.39 billion from $8.99 billion a year ago, which represents a 6.7% decline.
Despite the rollout of its M5-powered Macs, the deeper problem may lie in the rise of component costs that could be adversely hitting Apple's bottom line.
Apple 'just had a quarter, for the record book"
Apple CEO Tim Cook spoke on the company’s Q1 2026 earnings call to report outstanding news regarding the iPhone. 'Today, Apple is proud to report a remarkable, record-breaking quarter,' explained Cook.
iPhone net sales reached $85.27 billion, up from $69.14 billion a year ago. With record-breaking revenue from its smartphone lineup, it is no surprise Tim Cook is exuberant about the results. He noted that the iPhone had its 'best-ever quarter driven by unprecedented demand' with all-time records set across every geographic segment.
New, more personalized Siri coming this year
During its Q1 2026 earnings call, Apple CEO Tim Cook said that the next iteration of Sir will be coming this year. "We are also collaborating with Google to develop the next generation of Apple foundation models. This will help power future Apple intelligence features, including a more personalized Siri coming this year," said Cook.
Services played a huge roll in Apples bottom line — revenue is up 14%
After speaking at length, Tim Cooked pass the earnings call over to Kevan Parekh, who dove into the impressive performance out of Apple's Services category.
"Services revenue was $30 billion, up 14% year over year," explained Parekh. "This performance continues to be broad based, with double digit growth in almost every market we track. Also reached all time revenue records for advertising, cloud services, music and payment services, with December quarter records on the App Store and video company gross margin was at 48.2%."
iPad revenue primarily driven by M5-powered iPad Pro
While the iPhone brought in the most revenue for Apple, iPad revenue was also positive, reaching $8.6 billion, which represents a 6% increase. Growth was driven by the M5-powered iPad Pro and the A16-powered iPad as the company continues to attract new users to the platform.
"Over half of the customers who purchased an iPad during the quarter were new to the product," explained Kevan Parekh. "This helped the iPad installed base reach an all-time high, and we also reached an all-time high for upgraders."
Apple sees market pricing for memory increasing significantly
The cost of components did not impact Apple too much financially in its Q1 2026 earnings report, but it may have a significant impact looking ahead to Q2.
"Memory had a minimal impact on the Q1, or December quarter, gross margin. We do expect it to be a bit more of an impact on the Q2 gross margin, and that was comprehended in the outlook of 48% to 49% that Kevan gave earlier," said Apple CEO Tim Cook.
With prices rising, this increase in component costs could ultimately lead to higher prices across Apple's product portfolio.
Google's AI technology could give Apple Intelligence a boost
Apple’s AI ambitions could yield greater rewards this year as the company taps Google Gemini to help power its devices. Despite a strong showing when Apple Intelligence first launched, the arrival of iOS 26 saw relatively few new additions. However, that is expected to change dramatically.
"We basically determined that Google's AI technology would provide the most capable Apple foundation models," said Tim Cook. "We believe that we can unlock a lot of experiences and innovate in a key way due to the collaboration."
By integrating Google's technology, Apple could inevitably introduce more practical features to match those of its rivals.
Apple expresses 'major competitive advantage' with its in-house chips
Apple has already explained how margins might be squeezed in Q2 as market pricing for memory increases significantly, but the company continues to emphasize the value of making its own in-house chips.
"In terms of the product, which is at the heart of what we think about... silicon has just been an incredible game changer for us, starting with iPhone and then on iPad, and, of course, the Mac as of a few years ago," said Tim Cook. "We believe it's a game changer and a major competitive advantage."
Apple could be incentivized to accelerate efforts in developing more of its own silicon, which could help drive costs down for the company and inherently lead to larger margins.
Forget Vision Pro! Apple needs to focus on what's next
Apple didn’t provide specific financial data for its mixed reality headset, the Vision Pro, in its latest report, but the device offers a hard lesson the company cannot afford to overlook.
Innovation drives growth, and I believe the future is still centered around mixed reality experiences. Rumors suggest Apple is exploring smart glasses similar to the Meta Ray-Ban Display. If consumers are willing to pay a premium, the resulting product must be groundbreaking.
Of course, Apple may face a tough challenge in finding the right balance between price and features. Nevertheless, smart glasses are an area of opportunity I hope Apple invests in heavily.
Analyst weighs in...
Tom's Guide received a statement from analyst Avi Greengart of Techsponential with a comment on Apple's earnings. As you might expect, he was impressed with Apple's earnings.
"Apple hit new corporate revenue and profit records, thanks to soaring sales of iPhones everywhere globally. The iPhone 17 is a much stronger value than recent past base model iPhones, and camera and battery improvements helped the iPhone 17 Pros," said Greengart in a statement.
"Apple's pricing stability despite expectation of higher prices due to tariffs and memory shortages likely played a part, too," he continued.
"Macs dipped a bit, Wearables were down just slightly, iPad was up, and, say it with me, Services set an all-time new record. Apple now has 2.5 billion active devices in the market. As the installed base grows and Apple adds services, it's almost impossible for Services not to set a new record each quarter.
Wow."
Things certainly seem to be going Apple's way in the most recent quarter.
