Apple and Microsoft both beat earnings estimates, but their margins are moving in opposite directions. Apple's June-quarter revenue rose 16.4% to $109.42 billion, iPhone sales climbed 22% to $54.3 billion, and gross margin reached 50.1%, though tariff refunds added about two percentage points and memory costs are rising. Microsoft's revenue grew 18.8% to $92.28 billion and Azure rose 48%, but Microsoft Cloud gross margin fell to 66% as capital expenditures reached $45.2 billion and free cash flow was $18.6 billion. Microsoft expects calendar-year capex of about $170 billion, while Apple largely relies on partners for AI capacity. The author leans toward Apple for its margin quality, while noting Apple trades near 45 times earnings versus 29 for Microsoft.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Apple Vs.Microsoft: Margin Expansion Is Apple’s Massive Advantage
Read the original on Yahoo Finance ↗
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Related tickers and likely impact
AAPL
▲ Likely positiveApple Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Technology Hardware, Storage & Peripherals |
| Market cap | $5.1T |
| Close on 10/30/2026 | 344.79 |
| Change that session | -1.18% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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