New York, Jan 29, 2026, 17:05 EST — After-hours
- Apple shares climbed roughly 0.7% in after-hours trading following the iPhone maker’s holiday quarter results, which beat Wall Street expectations.
- iPhone net sales reached $85.3 billion, with Greater China revenue climbing to $25.5 billion and Services increasing to $30.0 billion.
- Apple confirmed an AI-related acquisition amid investor pressure on Big Tech to show clearer returns from their spending.
Apple shares climbed roughly 0.7% to $260.22 in after-hours trading Thursday following a holiday-quarter beat driven by what CEO Tim Cook described as “staggering” demand for the iPhone 17 lineup. (Public)
The results carry weight because Apple has spent months grappling with a familiar concern: slowing iPhone upgrades and a tougher China market. But the company just delivered its largest iPhone quarter on record, along with a strong rebound in Greater China — two key metrics traders watch closely as a barometer of whether Apple’s momentum is firing on all cylinders or faltering.
They’re searching for an AI narrative that won’t come with the costly baggage that’s unsettled other investors. Ahead of the earnings, Goldman Sachs analysts highlighted Apple’s move to integrate Google’s Gemini into a revamped Siri, a strategy they say should help the iPhone remain “the consumer device of choice” for emerging AI tools. Meanwhile, investors are on the lookout for any signals about a global memory-chip shortage that might tighten margins. (Reuters)
Apple reported total net sales of $143.8 billion for the quarter ended Dec. 27. iPhone sales led the way with $85.3 billion, followed by Services at $30.0 billion. In Greater China, net sales reached $25.5 billion. Wearables, home, and accessories added $11.5 billion, while Mac and iPad net sales stood at $8.4 billion and $8.6 billion, respectively.
Gross margin, which shows how much the company retains after covering costs of goods and services sold, stood at roughly 48%. Net income came in at $42.1 billion.
Cook described the quarter as “record-breaking” in Apple’s statement, noting the installed base of active devices has now surpassed 2.5 billion. CFO Kevan Parekh reported nearly $54 billion in operating cash flow for the quarter, which funded nearly $32 billion returned to shareholders. Apple also announced a $0.26 per share dividend, set for payment on Feb. 12. (Apple)
Not all segments performed smoothly. Wearables and accessories lagged, while Apple continues to rely on Services growth to offset the unpredictable shifts in hardware demand.
Apple has acquired Q.ai, an Israeli startup specializing in audio-focused AI, in a deal reportedly worth around $1.6 billion, according to a source familiar with the matter. Q.ai’s CEO Aviad Maizels described the move as unlocking “extraordinary possibilities,” while Apple’s hardware technologies chief Johny Srouji praised the startup as “remarkable.” (Reuters)
The mood remains volatile. Wall Street is quick to penalize firms whose spending outpaces their narrative, and this week’s Big Tech earnings have only fueled skepticism over whether huge AI investments will deliver returns anytime soon. (Reuters)
Risks are embedded in the numbers Apple just reported. If memory costs rise faster than Apple can absorb, hardware margins will tighten. Demand in China could drop suddenly, while ongoing regulatory scrutiny over Services continues to hang over the company.
Investors are shifting focus to Apple’s outlook for the current quarter: will iPhone demand remain strong across the board? Can supply of wearables finally keep pace? And how quickly will AI features linked to Gemini and the newly added Q.ai appear in products consumers actually purchase?
Management’s comments and guidance will follow at 5 p.m. ET during Apple’s conference call. Analysts are expected to zero in on margins, the pace of growth in China, and when the AI rollout will begin.
