Apple Q1 2026 Earnings: iPhone Sales and AI Investments in Focus
Apple (AAPL) is set to report its Q1 2026 earnings after the market closes on January 29, with analysts anticipating strong performance driven by robust iPhone 17 sales and a growing AI-driven services sector. Revenue is projected at $138.48 billion, with earnings per share of $2.67, reflecting 10%-12% year-over-year growth.
The company's AI strategy is under scrutiny as it navigates a global memory shortage exacerbated by the AI data center buildout. Apple recently partnered with Alphabet (GOOGL) to integrate Google's Gemini models into its ecosystem, aiming to enhance Siri's capabilities. This collaboration has already buoyed AAPL's stock, though sustained AI investments may unsettle some investors.
In a strategic move, Apple acquired Q.ai, an Israeli AI startup specializing in audio technology. The deal terms remain undisclosed, but the acquisition underscores Apple's commitment to deepening its AI expertise amid intensifying industry competition.