Apple Delivers Best Quarter In Years

“Way” back in October, Tim Cook said iPhone sales and also total revenue at Apple should rise double-digits during the holiday quarter.

It was a relatively rosy forecast for a company which hasn’t grown the top line by 10% or more since late-2021. On Thursday, Cook made good on his promise. And then some.

Total revenue at Apple during the three months ended December 27, 2025, was $143.76 billion, more than $5 billion ahead of consensus and up nearly 16% YoY.

That marks the briskest revenue growth for the world’s best consumer products company in more than four years.

Cook called the quarter “remarkable” and said the results were “well above” the company’s own expectations. iPhone demand, he went on, was “unprecedented,” notching records in every geographic segment Apple sells into.

At $85.27 billion, iPhone sales were nearly $7 billion more than the Street anticipated. The YoY gain was 23%, a veritable blowout. Crucially, Greater China sales not only returned to growth, they did so in dramatic fashion, leaping 38%, with the lion’s share of the gain attributable to iPhones.

And yet, Apple came up short on most other line items, including services where, despite a 14% gain and record sales, $30.01 billion in revenue counted as a small miss to consensus. Mac sales were short of the mark (not surprising considering the lack of refreshes on that front), as were wearables, while iPad revenue managed a modest beat.

Gross margin was 75bps or so better than expected. Profit rose 16% and EPS, at $2.84, beat by 17 cents. Suffice to say rising memory and storage costs didn’t bite last quarter, but Cook and Kevan Parekh need to be careful about how they address that issue when pressed by analysts.

Whatever happens going forward, there’s no denying that Apple just had a blockbuster quarter. Parekh called it “exceptional,” and Cook used a lot of superlatives on Thursday afternoon. The results, he said, are “a testament to incredible customer satisfaction for the very best products and services in the world.”


 

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4 thoughts on “Apple Delivers Best Quarter In Years

    1. I’ve never shared your enthusiasm for Apple products, but I really respect their management for refusing to follow the herd and waste hundreds of billion dollars developing their own LLMs. Why should they?? Every LLM vendor would love to be able to directly offer their products to Apple’s loyal customer base.

      Yet even tonight I see: “AI is an ‘existential threat’ for Apple, analyst says”.

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