I am proud to say that we just had a quarter for the record books. We are reporting our best-ever quarter with $143.8 billion in revenue, up 16% from a year ago and exceeding our expectations. The demand for iPhone was simply staggering, with revenue growing 23% year-over-year and all-time records across every geographic segment. Services set an all-time revenue record as well, up 14% from a year ago, and EPS reached an all-time record of $2.84, growing a robust 19% year-over-year.
We set all-time revenue records in the Americas, Europe, Japan, and rest of Asia Pacific, and grew in the vast majority of markets we track. We continue to gain momentum in emerging markets, which includes India, where we saw strong double-digit revenue growth. Greater China also grew 38% year-over-year, driven by iPhone, which had record upgraders and double-digit growth on switchers. As I mentioned earlier, it was a fantastic quarter for iPhone, with an all-time revenue record of $85.3 billion, up 23% year-over-year.
Meanwhile, iPad saw December quarter revenue of $8.6 billion, up 6% from a year ago, with an all-time record for upgraders. Turning to services, we achieved an all-time revenue record of $30 billion, 14% higher from a year ago. Services also set all-time revenue records in both developed and emerging markets. Apple TV has seen fantastic momentum, with December seeing a 36% increase in viewership over the previous year.
| Metric | Period | Current guidance |
|---|---|---|
| Total company revenue growth | Q2 FY2026 (March quarter) | 13%-16% YoY, comprehending constrained iPhone supply |
| Services revenue growth | Q2 FY2026 (March quarter) | similar YoY rate to December quarter |
| Gross margin | Q2 FY2026 (March quarter) | 48%-49%, with a bit more memory-cost impact |
| Operating expenses | Q2 FY2026 (March quarter) | $18.4B-$18.7B, similar to December, higher R&D YoY |
| OI&E | Q2 FY2026 (March quarter) | around $100M, excluding mark-to-market of minority investments |
| Tax rate | Q2 FY2026 (March quarter) | around 17.5% |
| Metric | YoY | Note |
|---|---|---|
| iPhone revenue | +23% | iPhone 17 family strength (display, camera, new selfie camera, performance, design); all-time records across every geographic segment and a new all-time upgrader record; exited quarter with very lean channel inventory |
| Mac revenue | -7% | Very difficult compare against prior-year M4 MacBook Pro, Mac Mini and iMac launches, despite growth in several emerging markets |
| iPad revenue | +6% | M5-powered iPad Pro and A16-powered iPad; all-time record for upgraders and over half of buyers new to the product |
| Wearables, home and accessories revenue | -2% | Constraints on AirPods Pro 3; management believes the category would have grown absent the constraints |
| Services revenue | +14% | Broad-based double-digit growth in almost every market; all-time records in advertising, cloud services, music and payment services; App Store and video December-quarter records |
| Greater China revenue | +38% | iPhone-driven, best-ever China iPhone quarter, record upgraders and double-digit switcher growth; store traffic up strong double digits |
| Company gross margin | 48.2% (up 100bps sequentially) | Favorable mix and leverage from the strong iPhone cycle; products gross margin up 450bps to 40.7%; memory had minimal Q1 impact |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Supply constraints | Constrained on several iPhone 16/17 models (prior quarter) | In supply-chase mode; currently constrained by advanced-node (3nm) SoC capacity due to 23% iPhone growth outstripping internal estimates; hard to predict when supply and demand balance | — |
| Memory costs | Minimal impact in December quarter | Expected to be a bit more of an impact to March-quarter gross margin (in the 48%-49% guide); market pricing rising significantly beyond Q2; will look at a range of options | — |
| AI strategy / Google partnership | Building own foundation models; personalized Siri expected next year | Collaborating with Google to develop next-generation Apple Foundation Models to power a more personalized Siri coming this year; will still run on-device and in Private Cloud Compute; deal terms undisclosed | — |
| China | Return to growth expected | +38% YoY, best-ever China iPhone quarter, record install base and upgraders, strong double-digit switcher growth | — |
| Installed base | All-time high (prior quarter) | Surpassed 2.5 billion active devices; majority of enabled iPhone users actively using Apple Intelligence (15 languages) | — |
| U.S. investment / CapEx | $600B four-year U.S. commitment; Private Cloud Compute buildout | Q1 CapEx moderated sequentially; hybrid model retained; shipping Apple Intelligence servers from Houston; Corning Kentucky making 100% of iPhone/Watch cover glass | — |
| Tariffs | Guided ~$1.4B for December quarter | Landed roughly at ~$1.4B for the December quarter | — |