Apple (AAPL) reported sturdy Q1 2026 earnings on Thursday with $143.8 billion in income, pushed by report iPhone gross sales. The corporate’s income revved up 16% 12 months over 12 months. whereas diluted earnings per share had been $2.84, up 19% 12 months over 12 months. Moreover, Apple Finance chief Kevan Parekh stated that Apple expects income this quarter to rise between 13% and 16% on an annual foundation. This is able to be equal to between $107.8 billion and $110.66 billion, larger than Wall Road estimates.
Apple additionally noticed significantly sturdy ends in China, together with Taiwan and Hong Kong. Gross sales within the area surged 38% through the quarter to $25.53 billion. Prepare dinner stated that the efficiency within the area was pushed by iPhone gross sales. “We set an all-time report for upgraders in mainland China, and we noticed double-digit development on switchers,” Prepare dinner stated. Upgraders seek advice from present iPhone customers who purchased newer fashions, and switchers means new clients who beforehand had telephones from totally different manufacturers. In China, Apple “noticed a elevate that, frankly, was a lot higher than we thought we’d see,” Prepare dinner stated, including that it was “product-driven.”
Apple Delivers on Earnings, however Why is AAPL Down?
Whereas Apple (AAPL) earnings beat Wall Road estimates, AAPL inventory is definitely down within the final 24 hours. At press time, the inventory has slipped simply over 1%, with traders seemingly not satisfied by the quarterly earnings. Actually, AAPL traders had been extra centered on feedback made by CEO Tim Prepare dinner. In the course of the earnings name, Prepare dinner stated the worldwide reminiscence crunch will hit the corporate’s margins sooner or later. Apple initiatives margins of between 48% and 49% in Q2. Gross margins in Q1 had been 48%.
Whereas the AI bubble has confirmed fruitful for large tech giants like Amazon, Apple and Alphabet, the information middle buildout has additionally put a large pressure in the marketplace for reminiscence chips. Therefore, the worth of smartphones, laptops, and another client or enterprise units may rise, as Apple has seemingly warned. That’s along with the already present AI competitors that AAPL traders think about.
Regardless of the dip, Wall Road analysts stay typically optimistic about Apple (AAPL) inventory potential publish Q1 2026 earnings. Wedbush and Tigress Monetary are optimistic, with worth targets of $350 and $305, respectively, indicating development potential. At press time, AAPL sits at $256.
