Apple's R&D expenses for the 2026 fiscal year increased by 32% year-on-year, setting a new record high, and increasing investment in AI.

Apple's R&D expenses for the 2026 fiscal year reached a record high of $457.65 billion, an increase of 32.46% year-on-year; R&D expenses for the fourth fiscal quarter were $117.30 billion, a year-on-year increase of 32.3%. CFO Parekh said the increase in operating expenses was mainly due to continued investment in R&D. CEO Nadella views AI as a huge opportunity, emphasizing the cross-platform integration of Siri AI and user data security.