Apple Inc. stock research
FY2026 Q1
Apple (AAPL) Gross Margin — Quarter Ended Dec 27, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved relative to both periods, reflecting a stronger relationship between revenue and gross profit.
Gross margin takeaway
Quarter ended Dec 27, 2025 · FY2026 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved relative to both periods, reflecting a stronger relationship between revenue and gross profit.
- The gross margin improved sequentially and year-over-year, driven by a higher proportion of gross profit relative to revenue. The strongest observable driver is the increase in gross profit outpacing the increase in revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher. Compared to the same quarter one year earlier, all three metrics were also higher, with gross margin showing improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.2%
Gross profit
$69.2B
Revenue
$143.8B
Cost of revenue
$74.5B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
+1.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 29, 2025 | $95.4B | $44.9B | $50.5B | 47.1% |
| Jun 28, 2025 | $94.0B | $43.7B | $50.3B | 46.5% |
| Sep 27, 2025 | $102.5B | $48.3B | $54.1B | 47.2% |
| Dec 27, 2025 | $143.8B | $69.2B | $74.5B | 48.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 27, 2025
+1.0 pts
Year-over-year change
Dec 28, 2024
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, driven by a higher proportion of gross profit relative to revenue. The strongest observable driver is the increase in gross profit outpacing the increase in revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher. Compared to the same quarter one year earlier, all three metrics were also higher, with gross margin showing improvement.
Monitor the trend in cost of revenue relative to revenue, as it increased in absolute terms but declined as a share of revenue.