New York, Jan 30, 2026, 09:38 ET — Regular session underway.
- Apple shares climbed roughly 0.6% in early trading following the company’s update signaling stronger growth for the March quarter.
- Apple projected revenue to rise between 13% and 16% for the March quarter, with gross margins expected in the 48% to 49% range.
- Investors remain focused on chip supply issues and Apple’s upcoming announcements regarding AI features and pricing.
Apple shares climbed 0.6% to $258.28 in early Friday trading, building on a late rally sparked by the company’s upbeat sales forecast for the March quarter.
This move is key as investors watch for signs Apple can sustain iPhone demand and protect profits amid rising chip costs. Apple forecasted March-quarter revenue growth of 13% to 16%, beating analysts’ 10% estimate, according to LSEG data. It also projects a gross margin between 48% and 49%. eMarketer analyst Jacob Bourne noted the memory shortage might boost the importance of “services momentum” if hardware margins shrink. 1
Apple posted $143.76 billion in revenue for the quarter ending Dec. 27, with net income hitting $42.10 billion, or $2.84 per share. iPhone sales increased to $85.27 billion, and services brought in $30.01 billion. Sales in Greater China grew to $25.53 billion.
CEO Tim Cook described the quarter as “record-breaking,” noting Apple’s installed base surpassed 2.5 billion active devices. CFO Kevan Parekh reported nearly $54 billion in operating cash flow and said Apple returned close to $32 billion to shareholders. The board also announced a $0.26 per share dividend, payable Feb. 12 to shareholders of record on Feb. 9. 2
Apple dropped new AI news for investors, revealing its acquisition of Israeli audio AI startup Q.ai. A source familiar with the deal told Reuters it valued Q.ai at roughly $1.6 billion, though Apple kept the terms under wraps. Johny Srouji, Apple’s senior VP of hardware technologies, praised Q.ai as “a remarkable company” in a statement. 3
On Thursday, the stock moved more sharply. Shares jumped roughly 3.5% in after-hours trading — the session after the market closes — before trimming some of those gains.
Wearables, home, and accessories hit a soft patch as sales fell short of Wall Street’s forecasts. Cook admitted demand for AirPods Pro 3 surprised Apple. This stumble raised questions about the company’s ability to steady hardware fluctuations, even amid a robust iPhone cycle.
The outlook carried some warnings. Cook noted that processor supply bottlenecks are holding back iPhone production. He also cautioned that a global DRAM memory shortage, fueled by AI-driven demand, is expected to hit harder in the March quarter.
Apple also leaned on Asia, highlighting a rebound in China alongside stronger demand in India. It noted that iPhones took market share from Android devices during the holiday quarter.
The tight supply chain that props up pricing could also limit unit sales if parts remain scarce, particularly if memory prices continue to rise and Apple decides against hiking prices. A slowdown in consumer spending would shift more pressure onto services — Apple’s higher-margin segment.
Traders will be watching to see if Apple can reach its 13% to 16% growth target for the March quarter while maintaining a gross margin between 48% and 49%, despite worsening chip shortages. A more immediate checkpoint arrives on Feb. 9, the cut-off date to own the stock and qualify for the Feb. 12 dividend.
