It is January 16, 2026, which means we are currently in Quarter 1 (Q1).
Specifically, you’re sitting in the first month of the year. For most of us, this is the season of "fresh starts" and aggressive goal-setting, but for a corporate accountant or a retail manager, it’s basically the hangover period after the holiday madness.
The question of what quarter are we in sounds simple. It’s a calendar thing, right? Well, sort of. While the standard calendar year is the default for most of the world, "The Quarter" is a shape-shifting concept depending on whether you’re talking to a government official, a tech CEO, or a tax professional.
The Standard Breakdown: Why Q1 Matters Right Now
Most people operate on the Gregorian calendar. In this world, the year is a tidy 12-month block divided into four three-month segments. Since it's mid-January, you are squarely in the first 90 days.
Quarter 1 (Q1): January, February, March.
Quarter 2 (Q2): April, May, June.
Quarter 3 (Q3): July, August, September.
Quarter 4 (Q4): October, November, December.
Right now, in Q1, the vibe is unique. It’s the "planning phase." In the business world, Q1 is where budgets are finalized—or at least where people start spending the money they fought for in November. It’s also "Tax Prep Season." Even though taxes aren't due until April in the U.S., the psychological weight of Q1 is heavily tied to looking backward at last year’s performance while trying to maintain the momentum of New Year's resolutions.
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The Fiscal Year Chaos: It’s Not Always Q1
Here’s where it gets messy.
If you work for the U.S. Federal Government, you aren't in Q1. You’re actually in Quarter 2.
The federal fiscal year starts on October 1st. Why? Because the government needs time after the summer to figure out how to spend trillions of dollars before the new year actually hits. So, for a government contractor or a military logistics officer, "what quarter are we in" has a completely different answer. They are currently burning through their Q2 budget while you’re just starting your Q1 resolutions.
Retailers like Walmart or Best Buy often have fiscal years that end in January. They do this because December is their busiest month. They don't want to be counting inventory and closing books on New Year’s Eve when they could be selling TVs. For them, late January is the end of their year, meaning they are technically in their Q4 right now.
Why the distinction actually changes your life
- Job Hunting: If a company’s fiscal year ends in December, they might have "headcount" available in Q1 (now). If their year ends in June, they might be in a hiring freeze right now because they’ve run out of cash for the year.
- Sales and Discounts: Ever notice why gyms are packed in Q1 but car dealerships have weirdly specific sales in October? It’s all tied to quarterly targets.
- Stock Market Volatility: "Earnings Season" usually kicks off a few weeks after a quarter ends. Since we just finished Q4 of 2025, we are currently seeing a flood of reports showing how companies actually performed during the holiday rush.
The Psychology of the Quarter
There’s a concept in behavioral economics called the "Fresh Start Effect." Researchers like Katherine Milkman at Wharton have studied how temporal landmarks—like the start of a new quarter—act as a reset button for human motivation.
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Q1 is the heavyweight champion of fresh starts.
But there’s a danger here. We tend to over-plan in Q1. We think we have an infinite runway because March seems miles away. Then, suddenly, it’s March 15th, you haven't hit your sales targets, and the "Q1 panic" sets in.
Honestly, the most successful people I know don't treat the quarters as equal. They treat Q1 as the "Sprint," Q2 as the "Pivot," Q3 as the "Grind," and Q4 as the "Finish." Right now, you should be sprinting. If you're still "planning" your year on January 16th, you're already behind the curve.
Misconceptions About the Calendar
People often think every business follows the same rhythm. They don't.
Apple, for example, often has a fiscal year that starts in late September. This aligns with their iPhone launch cycles. When analysts talk about Apple’s "Q1," they are usually talking about the holiday quarter that just ended. It gets confusing fast. If you’re investing, you have to look at the specific IR (Investor Relations) page of a company to see what their "Q1" actually means.
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Another weird one? The school year. Educators and administrators live in a world where the year starts in August or September. Their "Q1" is the autumn frenzy. By the time January 16th rolls around, they are deep in the mid-year slump.
How to Win Your Current Quarter
Since we are in the opening weeks of the year, the goal isn't just to know what quarter it is, but to use that information to your advantage.
Stop looking at the whole year. It's too big. It's overwhelming.
Instead, look at the next 74 days remaining in Q1.
Review your Q1 budget. Did you overspend during the holidays? Most people did. Use the remainder of January to "dry out" your finances.
Check your "Burn Rate." Whether it's your personal bank account or your business's operating expenses, Q1 is where you set the tone.
Audit your Q4 performance. Look at what you did in October through December of 2025. What worked? What was a total waste of time? Use this week—right now—to cut the dead weight.
Actionable Steps for Q1 2026
- Determine your "True" Quarter: Identify if your employer or your main clients operate on a non-standard fiscal year. If they do, sync your big pitches or asks to their Q4 (when they are trying to spend remaining budget) or their Q1 (when new money arrives).
- The 12-Week Year Approach: Stop thinking in 12-month blocks. Treat this quarter as a full year. Set a goal that must be finished by March 31st. This creates a sense of urgency that "Yearly Goals" usually lack.
- Tax Documentation: Don't wait until April. Because we are in Q1, you should be collecting every 1099, W2, and receipt from 2025 right now. By February 1st, you should have a folder ready to go.
- Mid-Quarter Review: Mark February 15th on your calendar. That is the exact midpoint of Q1. If you haven't made 50% progress on your quarterly goals by then, you need to pivot.
Understanding what quarter are we in is about more than a date on a screen. It’s about context. It’s about knowing that while you’re starting fresh, someone else is in the middle of a fiscal crisis, and a third person is already looking toward summer.
Sync your energy to the calendar. Use the Q1 momentum while it lasts, because by the time Q2 rolls around in April, the "New Year" energy will be long gone, and only discipline will be left to carry the load.