NEW YORK, Jan 31, 2026, 12:05 PM EST — Market closed.
- Apple shares ended Friday at $259.48, gaining 0.46%.
- Investors are balancing a brighter sales forecast with constraints on supply and climbing memory-chip prices.
- Upcoming milestones: Monday’s open, several megacap earnings reports, and the U.S. jobs data due February 6.
Apple shares closed Friday up 0.46% at $259.48. The iPhone giant’s earnings report and outlook reshaped expectations for big tech heading into Monday’s session. With U.S. markets closed Saturday, investors have a moment to dig into the details.
The company forecasted March-quarter revenue growth between 13% and 16%, with gross margins expected to hit 48% to 49% — that’s the portion of sales remaining after product costs. It also set operating expenses at $18.4 billion to $18.7 billion. Tim Cook acknowledged, “We’re currently constrained,” citing processor supply issues. Sales in China jumped, and demand in India picked up pace. Still, Jacob Bourne at eMarketer warned that “inflation-fatigued” consumers could pressure hardware margins. Reuters
Apple reported fiscal first-quarter revenue up 16% at $143.8 billion, with earnings per share rising 19% to $2.84, driven by strong iPhone and Services sales. Cook noted the active installed base exceeded 2.5 billion devices. According to Kevan Parekh, the quarter brought in nearly $54 billion in operating cash flow, enabling Apple to return close to $32 billion to shareholders.
The company revealed it acquired Israeli audio AI startup Q.ai in a deal pegged by a source close to the matter at roughly $1.6 billion. Johny Srouji described Q.ai as “a remarkable company” and said Apple is “thrilled to acquire the company” as it develops new tech to improve device performance with speech and sound in challenging environments. Reuters
Nikkei Asia says Apple plans to focus on producing and shipping its three top-tier iPhone models for 2026, including its first foldable device, while pushing back the standard model, according to sources familiar with the matter. Reuters couldn’t verify the report immediately, and Apple declined to comment outside normal business hours.
The calendar gets crowded now: Alphabet and Amazon are set to report earnings, while nerves remain frayed after Microsoft’s steep drop earlier this week. The Federal Reserve has hit pause on cutting rates, shifting the spotlight to the January jobs report, out Feb. 6 at 8:30 a.m. ET, per the U.S. Bureau of Labor Statistics. “For those companies where expectations have become very, very lofty, the onus is going to be on them to deliver,” said Jim Baird of Plante Moran Financial Advisors. Reuters
Wall Street closed down Friday as investors weighed the nomination of ex-Fed governor Kevin Warsh to head the central bank, plus inflation figures and earnings reports. Apple shares bounced back from earlier dips to end just above the flatline, Reuters noted.
The upbeat outlook carries some risks. Memory-chip prices are climbing, and Apple faces tighter constraints on components than usual. That combo could pinch margins or push the company into tougher pricing decisions if supply strains intensify.
Supply pressures extend beyond Apple. Samsung Electronics and SK Hynix, leaders in the DRAM sector, caution that rising AI demand will tighten capacity further, squeezing smartphone and PC manufacturers. Apple’s strong purchasing leverage, however, might cushion its impact.
Monday’s session will reveal if investors continue pushing Apple after its earnings, or if the rally fizzles out as a brief relief in a jittery market. Attention will also turn to the Feb. 6 payroll report and new signals on memory chip prices and iPhone availability.
