Apple Inc.'s shares gained more than 3 percent in the after-hours trading on Thursday after the tech major reported higher profit in its first quarter, above market estimates, with strong growth in net sales. This was despite weakness in iPhone and Wearables sales, as well as in China. The company also declared a cash dividend.
Further, in its first-quarter earnings call, Apple said it expects March quarter total company revenue to grow low to mid single digits year-over-year, and services revenue to grow low double digits, with gross margin to be between 46.5 percent and 47.5 percent.
Tim Cook, Apple's CEO, stated that the company reported its best quarter ever, with revenue up 4 percent from a year ago.
Cook in earnings call said, "We achieved all-time revenue records across the majority of the countries and regions we track, including the Americas, Europe, Japan, and the rest of Asia Pacific. We also continue to see momentum in emerging markets, setting all-time revenue records in a number of markets, including Latin America, the Middle East, and South Asia, among others."
He also noted that the company's next round of language rollouts will be in April.
Further, Apple's board of directors has declared a cash dividend of $0.25 per share, payable on February 13, to shareholders of record as of the close of business on February 10.
In the first quarter, Apple's net income totaled $36.33 billion, higher than prior year's $33.92 billion. Earnings per share of $2.40 increased 10 percent from $2.18 last year. The Wall Street analysts on average had expected the company to earn $2.34 per share. Analysts' estimates typically exclude special items.
The company's net sales for the period grew to $124.30 billion from $119.58 billion last year.
Products sales were $97.96 billion, 2 percent higher than prior year's $96.46 billion, driven by growth from iPad and Mac.
Among the products, iPhone sales dropped to $69.14 billion from prior year's $69.70 billion.
According to a recent survey from Kantar, during the December quarter, iPhone was a top-selling model in the U.S., urban China, India, the U.K., France, Australia, and Japan.
Wearables, Home and Accessories sales also fell 2 percent year over year to $11.75 billion.
However, sales of Mac were 16 percent higher to $8.99 billion, driven mainly by latest Mac lineup.
iPad revenue was $8.1 billion, up 15 percent from a year ago, driven by the new iPad mini and latest iPad Air.
Revenues from services grew 14 percent from a year ago to $26.34 billion, an all-time revenue record. Apple said it set all-time records in the Americas, Europe, and rest of Asia Pacific, and a December quarter record in Japan.
On a regional basis, sales from Americas grew to $52.65 billion from last year's $50.43 billion. Europe sales were $33.86 billion, up from prior year's $30.40 billion.
Sales in Japan increased to $8.99 billion from prior year's $7.77 billion, and sales in Rest of Asia Pacific edged up to $10.29 billion from $10.16 billion a year ago.
Meanwhile, Greater China sales fell 11 percent year over year to $18.51 billion. According to the firm, "over half of the decline that we experienced was driven by change in channel inventory from the beginning to the end of the quarter. And, of course, on the Apple Intelligence side, we have not rolled out in China."
The company ended the quarter with $141 billion in cash and marketable securities.
On the Nasdaq, Apple shares closed Thursday's regular trading at $237.59, down 0.74 percent. In the extended trading, the shares gained 3.03 percent to $244.79.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.