Apple posted fiscal first-quarter earnings and revenue that well exceeded Wall Street expectations, with both revenue and net income rising 16%, as consumers scrambled to upgrade their iPhones.
Apple’s earnings per share of $2.84 blew past the $2.67 expected by analysts surveyed by Yahoo Finance, and rose 18.3% from a year ago. The company saw growth across the board, with revenue reaching $143.76 billion — well above the $138.52 billion projected by analysts — while net income hit $42.10 billion. Sales for iPhones, which debuted its latest series of models in September, reached $85.26 billion, rising 23.3% over last year’s sales, which tallied $69.14 billion a year ago.
On Thursday’s earnings call, CEO Tim Cook called the demand for the new iPhone 17 family was “simply staggering,” calling out the release as the “strongest iPhone lineup we’ve ever had, and by far the most popular throughout the quarter.”
As Apple continues its work with AI — including its recent acquisition of Israeli audio AI startup Q.ai — Cook teased that its collaboration with Google’s Gemini will lead to additional AI features, including a “more personalized Siri” coming this year. The company has long been seen as a laggard in developing its own AI capabilities, and earlier this month struck its partnership with Google, which has poured billions of dollars into its own AI models.
“We believe we can unlock a lot of experiences” from the partnership, Cook said on the conference call with investors.
While iPhone sales saw the more impressive rise, Apple’s services sector, which includes Apple TV, Apple Music, iCloud, its App Store and more, also saw notable growth, with services hitting $30.01 billion, up 13.93% from last year.
The gains for the services business comes just weeks after the company touted that Apple TV broke its previous viewership record in December with total hours viewed up 36% year-over-year, rounding out what Senior Vice President Eddy Cue called a “record-breaking year” in 2025 across Apple Music, Pay, TV, News and iCloud.
Cook pointed to sci-fi series “Pluribus” for creating “landmark cultural moments that audiences are loving,” and teased upcoming anticipated releases like “Cape Fear,” from Steven Spielberg and Martin Scorsese, as well as the fourth season of “Ted Lasso” coming this summer. He also called out the critical acclaim for Apple’s “F1,” which earlier this month earned a best picture nomination at the Academy Awards.
iPad sales hit $8.60 billion, marking a 6.27% uptick from last year, though both Apple saw slight losses among sales for Mac as well as wearables, home and accessories. Mac sales totaled to $8.39 billion — down 6.69% from a year ago — while wearables, home and accessories hit $11.49 billion, down 2.16% from a year ago.
Looking ahead, Apple guided for 13% to 16% growth in revenue for the March quarter, although warned of supply constraints in the current period.
Net income: $42.10 billion, compared to $36.33 billion a year ago.
Earnings Per Share: $2.84, compared to $2.40 a year ago and $2.67 expected by analysts surveyed by Yahoo Finance.
Revenue: $143.76 billion, compared to $138.52 billion expected by analysts surveyed by Yahoo Finance.
iPhone Sales: $85.26 billion, compared with $69.14 billion a year ago.
Services: $30.01 billion, compared with $26.34 billion a year ago.
