Apple booked a record haul for the December 2025 quarter thanks to a spike in iPhone sales, while its services business continued to boom — reaching $30 billion in revenue for the first time.
Overall, Apple reported revenue of $143.8 billion (up 16%) for the three months ended Dec. 27, which is its first quarter of fiscal 2026. Net income came in at $42.1 billion, translating to diluted earnings per share of $2.84, up 19% year over year.
The tech giant’s huge quarter was driven by a 23% bump in iPhone sales, to $85.27 billion. That came on the heels of Apple’s introduction of the iPhone 17 family in late September.
Apple’s services segment also posted record quarterly revenue, coming in at $30.0 billion, up 14% year over year (roughly in line with analyst projections). The services unit includes sales generated by the App Store, Apple TV, Apple Music, Apple Pay, AppleCare, iCloud and advertising.
The top-line revenue was “well above our expectations,” Apple chief Tim Cook said in a prepared statement. said Tim Cook, Apple’s CEO. “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.”
Apple’s 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,” Cook said.
The results beat Wall Street consensus expectations for revenue of $138.48 billion and earnings per share of $2.67, according to LSEG Data & Analytics.
On the AI front, news broke Thursday that Apple acquired artificial-intelligence startup Q.ai, an Israeli firm whose technology analyzes facial expressions. The startup was co-founded by Aviad Maizels, one of the execs behind PrimeSense, which Apple acquired in 2013 to develop Face ID. Apple’s deal for Q.ai is valued at nearly $2 billion, the FT reported. Earlier this month, Apple and Google announced a multiyear pact under which the next generation of Apple’s foundational artificial-intelligence models will be based on Google’s Gemini AI technology. According to the companies, these models “will help power future Apple Intelligence features, including a more personalized Siri coming this year.”
Meanwhile, Apple original movies last week notched six Oscars nominations, including best picture for “F1,” the auto-racing action drama starring Brad Pitt.
Separately, Cook this week shared a memo with Apple employees in which he said he is “heartbroken” by the events in Minneapolis, where ICE agents have shot and killed two residents in recent weeks. “This is a time for deescalation,” the CEO wrote, saying that he had a “good conversation” with President Donald Trump about the situation.
Source: variety.com
