Apple’s Resurgence in China Fuels Record Quarterly Performance

Apple Inc. has reported a historic performance for the first quarter of its 2026 fiscal year, with results released on January 29th significantly surpassing market forecasts. The figures signal a dramatic recovery in a key region, prompting several prominent financial institutions to revise their outlooks for the company's shares upward.

In response to the robust earnings report, analysts from Goldman Sachs, JPMorgan, and Melius Research have increased their price targets. This collective move underscores a renewed confidence in Apple's growth trajectory.

• Goldman Sachs adjusted its target to $330, up from $320.
• JPMorgan raised its objective to $325 from $315.
• Melius Research now sees the stock reaching $350, a $5 increase from its previous estimate.
• Wedbush Securities reaffirmed its $350 price target.

Not all reactions were uniformly bullish. Rosenblatt Securities, while raising its target to $267, maintained a neutral rating on the equity, citing Apple's already elevated valuation as a point of caution.

Financial Highlights: Revenue and Profit Surge

For the quarter ending December 27, 2025, Apple posted a 16 percent year-over-year increase in revenue, reaching $143.8 billion. Net income climbed to $42.1 billion, resulting in earnings per share of $2.84. This comfortably exceeded the consensus estimate of approximately $2.67 per share.

The iPhone division was the primary growth engine, generating $85.3 billion in sales—a notable 23 percent jump compared to the same period last year. The Services segment also continued its expansion, setting a new record with revenue of $30.01 billion.

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Strategic Moves in Artificial Intelligence

Coinciding with the earnings release, Apple confirmed two significant strategic developments in the competitive field of artificial intelligence.

The company has acquired the Israeli AI startup Q.ai for an estimated $1.5 to $2 billion. Q.ai specializes in technology that analyzes facial movements, which is expected to be integrated into future wearable devices and the FaceID system.

In a notable partnership shift, Apple also announced a collaboration with Google. The company plans to utilize Google's Gemini-series foundation models to power upcoming Siri functionalities. This decision marks an unusual step for Apple, indicating a greater willingness to leverage external partnerships to accelerate its AI capabilities.

Regional Turnaround: Greater China Shows Remarkable Strength

A standout feature of the quarterly report was the performance in Greater China. Revenue in the region soared by 38 percent to $25.53 billion. This robust growth suggests that Apple's iPhone 17 series has successfully recaptured market share from local competitors, including Huawei. After several quarters of softer performance, the data indicates Apple is regaining its footing in this critical market.

Cautious Note from Leadership

Despite the celebratory results, Apple CEO Tim Cook struck a note of prudence regarding the near-term future. He highlighted that increasing costs for memory components could pressure profit margins in upcoming quarters. Furthermore, he identified ongoing supply chain dynamics as a persistent uncertainty for the business.