AAPL vs MSFT: Apple vs Microsoft Stock Comparison
Apple (AAPL) and Microsoft (MSFT) are two of the world’s most valuable companies. Apple earns most of its money from the iPhone and a fast-growing services business; Microsoft from software and the Azure cloud, where AI demand is driving growth near 50%. Apple returns far more cash to shareholders; Microsoft is spending heavily on AI data centers.
AAPL vs MSFT: 1-year performance
Our take
Cash machine vs. AI infrastructure compounder. Apple’s June quarter revenue rose 16% to $109.4B on a strong iPhone cycle (+22%), and it keeps returning more than $30B a quarter to shareholders. Microsoft’s September quarter revenue rose 19% to $92.3B with Azure up 48% and a $677B commercial backlog, but capital spending now runs at roughly half of revenue. Apple is the lower-capex, buyback-driven story with leadership change and memory-cost risk; Microsoft is the AI-growth story, still tied closely to OpenAI.
Prices and returns on this page update live; company figures are from company filings and announcements. Not investment advice.
AAPL strengths
Apple- iPhone and Mac upcycle. June 2026 quarter revenue $109.4B (+16%): iPhone $54.3B (+22%), Mac $10.4B (+29%), Services $30.7B (+12%).
- Huge capital returns. $33B returned in one quarter ($25.8B buybacks); a further $100B buyback authorized in April 2026; dividend raised 4% to $0.27 a quarter.
- Light AI capital needs. Instead of building frontier models, Apple licenses Google’s Gemini to power Siri and Apple Intelligence, keeping capex far below the hyperscalers.
MSFT strengths
Microsoft- Azure growth at scale. September 2026 quarter revenue $92.3B (+19%); Azure $33.2B (+48%) and Microsoft Cloud $63.9B (+30%).
- Contracted backlog. Commercial remaining performance obligations of $677B (+73%), including OpenAI’s Azure commitment and Anthropic’s $30B+ commitment.
- Profitability. Operating margin near 50% even while spending tens of billions a quarter on data centers; dividend raised 8% to $0.98 a quarter.
Key risks
- AAPL Rising memory costs: September quarter gross margin guided to 47–48% from 50.1%, which included about 2 points of one-off tariff refunds.
- AAPL Leadership change: John Ternus became CEO on Sep 1, 2026, with Tim Cook moving to executive chairman.
- AAPL Legal risk to the ~$20B a year Google pays to be Safari’s default search engine, as appeals in the US search case continue.
- MSFT Capex intensity: quarterly capex above $45B, roughly half of revenue, pressures free cash flow.
- MSFT OpenAI concentration: about 45% of commercial backlog was linked to OpenAI, and the April 2026 amendment ended exclusivity.
- MSFT Devices and consumer revenue down 3%; AI pricing and returns still to be proven at scale.
Total return
Split- and dividend-adjusted.
Quarterly revenue
Calendar quarters Q1 2025 – Q2 2026 (Apple fiscal quarters end late Dec/Mar/Jun/Sep).
Revenue growth y/y
Reported revenue growth vs the same quarter a year earlier.
AAPLMSFT
AAPL vs MSFT returns
Split- and dividend-adjustedTotal return includes reinvested dividends. The 5-year return is in the table only.
Risk (1 year)
| Metric | AAPL | MSFT |
|---|---|---|
| Annualized volatility | – | – |
| Max drawdown | – | – |
| Below 52-week high | – | – |
| Correlation of daily returns | – | |
Quarterly revenue ($M)
| Symbol | Q1 25 | Q2 25 | Q3 25 | Q4 25 | Q1 26 | Q2 26 |
|---|---|---|---|---|---|---|
| AAPL | 95,359.0 | 94,036.0 | 102,466.0 | 143,756.0 | 111,184.0 | 109,417.0 |
| MSFT | 70,066.0 | 76,441.0 | 77,673.0 | 81,273.0 | 82,886.0 | 90,007.0 |
AAPL vs MSFT fundamentals
Latest reported quarter: Apple Jun 2026, Microsoft Sep 2026| Metric | AAPL | MSFT | Edge |
|---|---|---|---|
| Market cap (live) | – | – | – |
| P/E ratio (live, trailing) | – | – | – |
| Dividend yield (live, on current annual rate) | – | – | – |
| Latest quarterly revenue | $109.4B (+16%) | $92.3B (+19%) | AAPL |
| Main growth engine | iPhone $54.3B (+22%) | Azure $33.2B (+48%) | MSFT |
| Recurring revenue | Services $30.7B (+12%) | Microsoft Cloud $63.9B (+30%) | MSFT |
| Gross margin | 50.1% | 67.8% | MSFT |
| Operating margin | 32.6% | 49.8% | MSFT |
| Diluted EPS (quarter) | $2.02 (+29%) | $4.92 (+32%) | – |
| Backlog | – | $677B commercial RPO | MSFT |
| Next-quarter outlook | Revenue +9–11%, gross margin 47–48% | Azure +49–50% (cc), capex above $50B | – |
| Cash and securities | ~$147B | ~$64.5B | AAPL |
| Total debt | ~$84B | ~$35.5B | MSFT |
| Annual dividend per share | $1.08 | $3.92 | – |
| Buybacks (latest quarter) | $25.8B | $2.9B | AAPL |
Deals, contracts and corporate actions timeline
| Date | Co. | Counterparty | Deal | Value |
|---|---|---|---|---|
| Oct 28, 2026 | MSFT | FQ1 FY27 results | Revenue $92.3B (+19%), Azure +48%, commercial backlog $677B; Azure guided +49–50% for the December quarter | – |
| Sep 1, 2026 | AAPL | John Ternus | Becomes CEO; Tim Cook moves to executive chairman (announced Apr 20, 2026) | – |
| Jul 30, 2026 | AAPL | FQ3 results | Revenue $109.4B (+16%), iPhone +22%, EPS $2.02 (+29%); gross margin 50.1% incl. ~2 points of tariff refunds | – |
| Apr 30, 2026 | AAPL | Shareholders | Additional $100B share buyback authorized; quarterly dividend raised 4% to $0.27 | $100B |
| Apr 27, 2026 | MSFT | OpenAI | Amended partnership: OpenAI may use any cloud, Microsoft’s IP license becomes non-exclusive through 2032 and its revenue-share payments stop | n/d |
| Mar 26, 2026 | AAPL | US suppliers | American Manufacturing Program expanded with four new partners under its $600B four-year US investment pledge | $600B pledge |
| Jan 12, 2026 | AAPL | Multiyear, non-exclusive deal for Gemini models to power Siri and Apple Intelligence | n/d | |
| Nov 18, 2025 | MSFT | Anthropic, NVIDIA | Microsoft invests $5B in Anthropic; Anthropic commits at least $30B to Azure | $5B |
| Nov 3, 2025 | MSFT | IREN | Five-year GPU cloud capacity contract (one of several neocloud deals incl. Nebius and Lambda) | $9.7B |
| Oct 28, 2025 | MSFT | OpenAI | OpenAI recapitalization: Microsoft receives a ~27% stake in the new for-profit company | ~27% stake |
AAPL vs MSFT analysis
Different routes to AI
Microsoft is one of the largest builders of AI infrastructure: Azure grew 48% last quarter and it now spends more than $45B a quarter on capex. Apple has taken the opposite route, licensing Google’s Gemini for Siri and keeping capital spending low, betting that its installed base of devices is where AI gets used.
Growth and margins
Apple’s revenue growth re-accelerated to the mid-teens on the iPhone, but the next quarter’s gross margin is guided lower as memory prices rise. Microsoft grows faster and with higher margins (operating margin near 50%), but much of its profit is reinvested, so free cash flow is a smaller share of earnings than at Apple.
Shareholder returns
Apple remains the largest buyer of its own stock, returning more than $30B a quarter. Microsoft returns about $10B a quarter, mostly through dividends, and its dividend yield is somewhat higher.
Valuation
Both trade at premium multiples (live P/E in the table above). Investors pay for Microsoft’s contracted cloud growth and for Apple’s cash returns and ecosystem durability.
What to watch
Apple’s September-quarter results and holiday outlook, memory costs and the new CEO’s priorities; for Microsoft, Azure capacity additions, capex guidance and how much of its backlog depends on OpenAI.
AAPL vs MSFT FAQ
Which is bigger, Apple or Microsoft?
Both are among the largest companies in the world by market value (live figures above). By quarterly revenue Apple is larger: $109.4 billion in its June 2026 quarter vs $92.3 billion for Microsoft in its September 2026 quarter.
Which company is growing faster?
Microsoft grew revenue 19% in its latest quarter, driven by Azure (+48%). Apple grew 16% in its June 2026 quarter, helped by a 22% jump in iPhone sales.
Which pays a higher dividend, AAPL or MSFT?
Microsoft pays $3.92 a year per share and Apple $1.08. Microsoft’s yield is higher, while Apple returns more cash overall through buybacks.
How does Apple use AI compared with Microsoft?
Apple licenses Google’s Gemini models to power Siri and Apple Intelligence, while Microsoft builds AI data centers for Azure customers including OpenAI and Anthropic.