Net Income Also Showing 15%+ Growth

Apple recorded double-digit+ growth in both revenue and net income in FY26 Q1 (quarter ending December 27, 2025). Total revenue: $143.756B (+15.6% YoY vs. $124.3B); Net income: $42.097B (+15.8% YoY) -- both exceeding market expectations. iPhone: $85.269B (+23.3% YoY) -- primary growth driver; premium model-focused sales strategy driving strong replacement demand. Services: $30.013B (+14% YoY) -- first quarter ever exceeding $30B; approximately 21% of total revenue; serving as stable earnings buffer regardless of hardware sales cycle. Greater China: approximately $25.5B (+38% YoY) -- directly countering concerns about market share decline and regulatory risk. Operating margin: 35.4% (vs. 34.5% prior year) -- improving profitability. Q1 FY26 context: Apple Intelligence (AI features) began rolling out across iPhone 16 lineup -- strong iPhone sales partially reflect upgrade demand driven by AI feature availability. The Services flywheel: each iPhone sold is a potential Services customer; growing installed base + increasing Services ARPU = compounding revenue growth increasingly independent of hardware cycle fluctuations.