Apple has released its latest earnings report, following the close of US markets Thursday, a day of tech-driven turbulence as broad-based profit reports and macroeconomic data tilted sentiment away from risk assets. The sharpest moves were concentrated in technology shares.

After the closing bell, Apple reported strong financial performance for its fiscal first quarter of 2026, delivering record revenue and earnings as demand for its products and services surged during the holiday period.

The quarter ended December 27, 2025, and marked Apple’s highest first-quarter results on record, reflecting broad-based growth across regions and business lines. Revenue for the quarter totaled $143.8 billion, representing a 16% increase from the same period a year earlier. Diluted earnings per share rose to $2.84, up 19% year over year, also setting a new company record.

“Today, Apple is proud to report a remarkable, record-breaking quarter, with revenue of $143.8 billion, up 16 percent from a year ago and well above our expectations,” said Tim Cook, Apple’s CEO. “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. We are also excited to announce that our installed base now has more than 2.5 billion active devices, which is a testament to incredible customer satisfaction for the very best products and services in the world.”

Apple said the milestone of more than 2.5 billion active devices highlights the strength of its ecosystem and customer loyalty, factors that continue to support growth in services revenue and recurring engagement. The services segment once again reached an all-time revenue high, benefiting from a growing installed base and expanding offerings.

Chief Financial Officer Kevan Parekh pointed to profitability and cash generation as key highlights of the quarter. “During the December quarter, our record business performance and strong margins led to EPS growth of 19 percent, setting a new all-time EPS record,” Parekh said. “These exceptionally strong results generated nearly $54 billion in operating cash flow, allowing us to return almost $32 billion to shareholders.”

As part of its capital return program, Apple’s board of directors declared a quarterly cash dividend of $0.26 per share. The dividend is payable on February 12, 2026, to shareholders of record as of the close of business on February 9, 2026.

Apple’s positive results came following the US market’s major indices rollercoaster day which ended with modest losses as investors digested mixed sector performance. The technology-heavy Nasdaq Composite lagged, dragged down by weakness in major growth names, while the broader S&P 500 also finished lower.

Markets had been buoyed earlier in the week by the Federal Reserve’s decision to hold interest rates steady, a development that reinforced expectations that monetary policy would remain accommodative in the near term. However, the refreshed focus on corporate earnings eclipsed that support, especially in tech sectors where execution questions are mounting.

Microsoft’s stock plunged sharply, marking their largest one-day decline since March 2020 as investors reacted to the company’s latest results and guidance. Concerns centered on the combination of the firm’s substantial investment in AI infrastructure and cloud-service growth that fell short of the enthusiasm reflected in recent valuations. The sell-off in Microsoft shares weighed heavily on related software and tech indices, highlighting how sensitive markets remain to profit growth and capital allocation plans amid the AI spending boom.

Despite a bumpy session for Tesla, reflecting investor reaction to its earnings and capital expenditure outlook, after-hours trading saw the firm’s shares rally on reports that Elon Musk’s aerospace company SpaceX is contemplating a merger with Tesla or with Musk’s AI venture xAI.

Of the three Magnificent 7 firms that reported their earnings Wednesday, Meta Platforms bucked the trend with a notable rally after beating profit expectations and outlining ambitious spending plans that didn’t spook the Street in the same way as Microsoft’s figures.

The next Magnificent 7 firms to report earnings are Alphabet and Amazon, expected next week.