KEY POINT
- Apple posted earnings per share of $2.84, exceeding expectations of $2.67.
- iPhone revenue rose 23 percent year over year, driving the quarterly beat.
- Shares climbed 2.6 percent in after-hours trading following the report.
Apple Inc. reported fiscal first-quarter 2026 earnings Tuesday, beating Wall Street estimates for a fifth straight quarter as iPhone revenue surged and services growth remained steady, easing investor concerns over rising component costs.
The Cupertino-based company released results after markets closed, delivering a quarter that exceeded forecasts despite margin pressures and slower services growth. Investors were watching closely to see if Apple could justify its premium valuation near thirty-four times trailing earnings.
Apple entered earnings season down 4.9 percent year to date, trading roughly 10 percent below its 52 week high of $288.62. Analysts flagged risks from rising iPhone component costs and slowing App Store revenue, with Jefferies warning of a “meaningful deceleration” and Aletheia Capital lowering its price target to $205.
iPhone sales, up 23 percent from a year earlier, drove the surprise, while services revenue met expectations. “The scale of the iPhone rebound is the key surprise,” said Gene Munster, managing partner at Deepwater Asset Management. CFO Luca Maestri noted “strong global demand for iPhone and continued engagement across our ecosystem.”
Supply side gains, including Micron’s 52 percent YTD rise, highlight potential margin pressure. “Apple managed costs better than expected this quarter,” said Angelo Zino, CFRA Research, “but sustainability remains a question.”
| Metric | Q1 2026 | Expectation | Prior Year |
|---|---|---|---|
| EPS | $2.84 | $2.67 | $2.18 |
| iPhone Revenue | +23% | Mid-teens | +2% |
| Services Revenue | Inline | Inline | Mid-teens |
Investors will watch guidance amid macro uncertainty, competition, and regulatory pressures. Strong iPhone demand and steady services provide near term support as Apple trades near analyst targets around $287.
Apple’s Q1 results underscore its resilience and iPhone driven growth, even as margin pressures and valuation considerations remain central for investors.