Apple’s iPhone sales soared to a new quarterly record, producing iPhone sales of $85.3 billion, a 23% increase from the same time in the previous year.
It marked Apple’s highest iPhone sales for a three-month period since the device’s debut in 2007.
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.
The iPhone’s robust performance propelled Apple to a profit of $42.1 billion, or $2.84 per share for the quarter, a 16% increase from the previous year.
“Today, Apple is proud to report a remarkable, record-breaking quarter, with revenue of $143.8 billion, up 16 percent from a year ago and well above our expectations,” 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. 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.”
The 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.
According to Cook, Apple TV viewership in December 2025 saw a 36% increase in total hours viewed over the previous year. (The company has not disclosed how many subscribers it has for the service, formerly called Apple TV+.)
For the March 2026 quarter, Apple expects total revenue to increase 13%-16% year over year, even as the company faces supply-chain constraints for iPhones.
“During the December quarter, our record business performance and strong margins led to EPS growth of 19 percent, setting a new all-time EPS record,” said Kevan Parekh, Apple’s CFO.
“These exceptionally strong results generated nearly $54 billion in operating cash flow, allowing us to return almost $32 billion to shareholders.”
The results beat Wall Street consensus expectations for revenue of $138.48 billion and earnings per share of $2.67.
Apple announced a deal this month to use Google’s Gemini models to power features for the iPhone and improve the Siri voice assistant, in addition to its existing relationship with OpenAI.
