Apple today announced financial results for its fiscal 2016 first quarter ended December 26, 2015. Apple posted record quarterly revenue of $75.9 billion and record quarterly net income of $18.4 billion, or $3.28 per diluted share. These results compare to revenue of $74.6 billion and net income of $18 billion, or $3.06 per diluted share, in the year-ago quarter. Gross margin was 40.1 percent compared to 39.9 percent in the year-ago quarter. International sales accounted for 66 percent of the quarter’s revenue.

As surveyed by Thomson Reuters, analysts’ consensus estimates for Apple Inc.’s Q116 results called for earnings of $3.23 per share and $18.22 billion in profit on $76.67 billion in revenue.

“Our team delivered Apple’s biggest quarter ever, thanks to the world’s most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV,” said Tim Cook, Apple’s CEO, in a statement. “The growth of our Services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of one billion active devices.”

Apple Q116 unit sales:
• iPhone: 74.779 million units
• iPad: 16.122 million units
• Mac: 5.312 million units

According to FactSet, analysts expected the following:
• iPhone units: 75 million, up less than 1% YOY
• iPad units: 18 million, down 16% YOY
• Mac units: 6 million, up 9% YOY

“Our record sales and strong margins drove all-time records for net income and EPS in spite of a very difficult macroeconomic environment,” said Luca Maestri, Apple’s CFO, in a statement. “We generated operating cash flow of $27.5 billion during the quarter, and returned over $9 billion to investors through share repurchases and dividends. We have now completed $153 billion of our $200 billion capital return program.”

Apple’s board of directors has declared a cash dividend of $.52 per share of the Company’s common stock. The dividend is payable on February 11, 2016, to shareholders of record as of the close of business on February 8, 2016.

Apple is providing the following guidance for its fiscal 2016 second quarter:
• revenue between $50 billion and $53 billion
• gross margin between 39 percent and 39.5 percent
• operating expenses between $6 billion and $6.1 billion
• other income/(expense) of $325 million
• tax rate of 25.5 percent

According to FactSet, analysts expected Q216 guidance of $55.6 billion in revenue, down 4%.

Apple will provide live streaming of its Q1 2016 financial results conference call beginning at 2:00 p.m. PST on January 26, 2016 at www.apple.com/investor/earnings-call/.