Apple Reports Q1 2026 Earnings Amid iPhone, AI Focus

All eyes are on Apple today, January 29, 2026, as it prepares to release its highly anticipated Q1 earnings report after the market closes. Strong iPhone 17 sales and AI-driven services are expected to power significant year-over-year growth.
Analysts project revenue of around $138.48 billion and an EPS of $2.67, representing 10%-12% growth. Consequently, iPhone revenue alone is anticipated to hit $78.3 billion, a 13% increase from the year-ago quarter.
However, the company is navigating industry-wide challenges like a memory shortage driven by the global AI data center buildout. Meanwhile, its recent AI partnership with Alphabet to use Google’s Gemini models has already moved its stock higher.
Earlier this month, the company and Alphabet issued a joint statement detailing the collaboration for a more personalized Siri. Furthermore, Apple bolstered its AI portfolio by acquiring Israeli audio AI startup Q.ai last week.
The deal for Q.ai, backed by firms like Matter Venture Partners and Kleiner Perkins, is estimated to be worth around $2 billion. This strategic acquisition will likely be discussed during the earnings call, potentially deferring significant market reaction until Friday.
Services revenue is also forecast to surge 14%, topping $30 billion. Importantly, revenue from China is expected to jump nearly 18%, marking a strong recovery from its weak performance in 2025.