Apple Posts Record Earnings As Q1 2017 Sees $78.4B Revenue & $17.9B Profit

Today, Apple announced their financial results for their fiscal first quarter of 2017, which is the holiday quarter, as Apple’s fiscal calendar runs from September to September. Apple earned $78.4 billion in revenue, and $17.9 billion in profit for $3.36 per diluted share. For comparison, Q1 of 2016 saw revenue of $75.9 billion, and profit of $18.4 billion for $3.28 per diluted share. The gross margin was 38.5 percent, compared to 40.1 percent in Q1 of 2016, and international sales provided 64% of the quarter’s revenue. Q1 of 2016 was Apple’s previous best quarter ever, and now they have topped it once again.

The revenue and earnings per share numbers were company records all time for the 1st quarter, and any quarter for Apple. The holiday quarter is their most important, and Apple just topped their own guidance of $76-78 billion in revenue. In terms of expectations for Q2 of 2017, Apple’s guidance is expected revenue of $51.5–53.5 billion. Apple has put all of their eggs in the holiday quarter basket once again, and it has delivered once again. The company now has $246.1 billion in cash, and marketable securities.

In terms of sales numbers, Apple sold 78.3 million iPhones, up from 74.8 million in the year ago quarter. They also sold 13.1 million iPads, which is down from the 16.1 million from the year ago quarter. The iPhone sales nudged up the record, while maintaining a 69% share of Apple’s earnings. Beyond iOS, Apple sold 5.4 million Macs, up from the 5.3 in the year ago quarter.

You can listen to the full financial results conference call here. Apple proved once again that updating all of their products in the fall for the holiday quarter is a sound business strategy. Apple hasn’t maintained their exceptional growth, but staying at such a high level is no small feat either. Revenue, earnings per share, and iPhone sales were all company records. The only question is if Apple can maintain momentum throughout the rest of the year with their strategy of putting their big new products in the fall.

No matter how you slice it, Apple is currently the most prolific tech company, and has somehow surpassed the outrageous quarterly expectations that they have generated. As CEO Tim Cook describes,

“We’re thrilled to report that our holiday quarter results generated Apple’s highest quarterly revenue ever, and broke multiple records along the way. We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch. Revenue from Services grew strongly over last year, led by record customer activity on the App Store, and we are very excited about the products in our pipeline.”

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