Apple has expanded on its fiscal first-quarter 2026 results with detailed financial statements that clarify where growth came from and how the business is allocating capital. For the three months ended December 27, 2025, Apple reported total net sales of $143.8 billion, up from $124.3 billion a year earlier. The increase was driven primarily by higher product sales, which rose to $113.7 billion from $98.0 billion, alongside continued expansion in Services revenue, which reached $30.0 billion compared with $26.3 billion in the prior-year quarter.
iPhone remained the company’s largest revenue contributor, generating $85.3 billion in sales, a substantial increase from $69.1 billion a year earlier. Mac revenue declined slightly year over year to $8.4 billion, while iPad revenue increased modestly to $8.6 billion. Wearables, Home and Accessories revenue slipped to $11.5 billion from $11.7 billion, reinforcing the uneven performance of Apple’s smaller hardware categories. Services continued to provide a steadier source of growth, benefiting from Apple’s large installed base and recurring subscription model.
Regionally, the Americas accounted for $58.5 billion in net sales, up from $52.6 billion. Europe generated $38.1 billion, while Greater China posted a notable increase to $25.5 billion from $18.5 billion a year earlier. Japan and the rest of Asia Pacific also recorded year-over-year gains, highlighting that the quarter’s growth was broadly distributed rather than concentrated in a single market.
On the cost side, total cost of sales rose to $74.5 billion, reflecting higher product volumes and expenses. Gross margin increased to $69.2 billion, compared with $58.3 billion a year earlier. Operating expenses grew as well, with research and development spending rising to $10.9 billion and selling, general, and administrative expenses reaching $7.5 billion. Even with these increases, operating income climbed to $50.9 billion, up from $42.8 billion in the prior-year quarter.
Net income for the quarter totaled $42.1 billion, compared with $36.3 billion a year earlier. Diluted earnings per share were $2.84, up from $2.40, reflecting both higher earnings and a reduced share count due to ongoing buybacks.
Apple’s balance sheet shows total assets of $379.3 billion as of December 27, 2025, up from $359.2 billion at the end of fiscal 2025. Cash and cash equivalents increased to $45.3 billion. Total liabilities stood at $291.1 billion, while shareholders’ equity rose to $88.2 billion, reflecting retained earnings and capital returns.
Cash flow from operating activities reached $53.9 billion during the quarter, up sharply from $29.9 billion a year earlier. Apple used much of this cash to repurchase $24.7 billion of its common stock and pay $3.9 billion in dividends, underscoring its continued focus on returning capital to shareholders while maintaining significant liquidity.
Taken together, the detailed financial data reinforces a familiar picture for Apple Inc.: strong holiday-quarter performance led by iPhone, a growing Services business that supports margins, rising operating costs tied to long-term investment, and an aggressive capital return strategy. The results point to stability at scale rather than a dramatic shift in Apple’s underlying business model.
