Apple Revenue Pops 16% to Nearly $144 Billion in Year-End 2025 Quarter on iPhone 17 Sales Blitz, Services Biz Hits $30 Billion

Apple booked a record haul for the December 2025 quarter thanks to a spike in iPhone sales, while its services business continued to boom, reaching $30 billion in revenue for the first time.

Overall, Apple reported revenue of $143.8 billion (up 16%) for the three months ended Dec. 27, which is its first quarter of fiscal 2026. Net income came in at $42.1 billion, translating to diluted earnings per share of $2.84, up 19% year over year.

The tech giant’s huge quarter was driven by a 23% bump in iPhone sales, to $85.27 billion. That came on the heels of Apple’s introduction of the iPhone 17 family in late September.

Apple’s services segment also posted record quarterly revenue, coming in at $30.0 billion, up 14% year over year (roughly in line with analyst projections). The services unit includes sales generated by the App Store, Apple TV, Apple Music, Apple Pay, AppleCare, iCloud and advertising.

Top-line revenue was “well above our expectations,” Apple chief Tim Cook said in a prepared statement. “iPhone had its best-ever quarter driven by unprecedented demand, with all-time records across every geographic segment, and Services also achieved an all-time revenue record, up 14 percent from a year ago.”

Apple’s installed base of active devices now numbers more than 2.5 billion, “which is a testament to incredible customer satisfaction for the very best products and services in the world,” Cook said.

The results beat Wall Street consensus expectations for revenue of $138.48 billion and earnings per share of $2.67, according to LSEG Data & Analytics.

On the AI front, news broke Thursday that Apple acquired artificial-intelligence startup Q.ai, an Israeli firm whose technology analyzes facial expressions. The startup was co-founded by Aviad Maizels, one of the execs behind PrimeSense, which Apple acquired in 2013 to develop Face ID. Apple’s deal for Q.ai is valued at nearly $2 billion, the FT reported.

Earlier this month, Apple and Google announced a multiyear pact under which the next generation of Apple’s foundational artificial-intelligence models will be based on Google’s Gemini AI technology. According to the companies, these models “will help power future Apple Intelligence features, including a more personalized Siri coming this year.”

According to Cook, Apple TV viewership in December 2025 saw a 36% increase in viewership over the previous year. (The company has not disclosed how many subscribers it has for the service, formerly called Apple TV+.) On the call, Cook gave shout-outs to Apple TV’s award-winning drama series “Pluribus” and touted the return of “Ted Lasso” for Season 4 this summer. Last week, Apple movies notched six Oscars nominations, including best picture for “F1,” the auto-racing action drama starring Brad Pitt.

For the March 2026 quarter, Apple expects total revenue to increase 13%-16% year over year, while the company faces certain supply-chain constraints, CFO Kevan Parekh told analysts. He said revenue in Apple’s services business to have a similar growth rate to the December 2025 quarter.

Separately, Cook this week shared a memo with Apple employees in which he said he is “heartbroken” by the events in Minneapolis, where ICE agents have shot and killed two residents in recent weeks. “This is a time for deescalation,” the CEO wrote, saying that he had a “good conversation” with President Donald Trump about the situation.