Apple reports record iPhone sales and its most profitable quarter ever

Apple reported record quarterly iPhone sales and its most profitable quarter ever for the three months ending in December, the company said on Jan. 29, 2026. Profit rose 16 percent from a year earlier to $42.1 billion and revenue rose nearly 16 percent to $143.8 billion. Apple attributed the surge to redesigned iPhones introduced in September — a thin iPhone Air and an overhauled iPhone Pro with a raised bump — and to higher prices on some models.

The company said those changes, coupled with robust holiday spending, lifted iPhone revenue to $85.3 billion, up 23 percent from a year earlier. Chief Executive Tim Cook said the "staggering level of demand" has constrained the company's ability to keep up and resulted in low inventory, adding, "At this point, it's difficult to predict when supply and demand will balance." The newest iPhones also helped a rebound in China: Counterpoint Research estimated Apple made up 22 percent of smartphone shipments there, and Apple reported China sales rose 38 percent to $25.5 billion.

Apple's results topped Wall Street expectations; analysts had forecast $138.38 billion in revenue and $39.49 billion in profit. The company said its share price rose as much as 2 percent in after-hours trading. Other results were mixed: services revenue rose nearly 14 percent to $30 billion, iPad sales rose 6 percent to nearly $8.6 billion, while sales slowed for wearables and Macs.

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