Apple just posted record revenue and unveiled a fresh batch of AI features at its biggest developer event of the year. The stock dropped anyway.
Shares fell roughly 2% following WWDC 2026, held June 8-9, where Apple showcased new Apple Intelligence capabilities and a revamped Siri.
Record revenue, rising doubts
Apple’s Q1 FY2026 came in at $143.8 billion in revenue, a 16% jump year-over-year, powered by solid iPhone sales and a Services business that keeps compounding.
Apple’s research and development spending climbed to 10.3% of revenue in the March 2026 quarter, the highest ratio the company has posted in decades. That kind of R&D intensity signals Apple is betting heavily on AI. It also signals that the returns on those bets haven’t arrived yet.
