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Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteNeither Apple nor Microsoft can be called the better long-term stock from operating results alone. Apple’s latest reported quarter showed strong device-and-services growth, while Microsoft reported a rapidly expanding cloud business and significant AI investment. Which is more attractive depends on the price an investor pays and on whether each company can sustain growth and earn returns on its investments.
What the latest results say—and what they do not
The companies’ figures cover different reporting periods, so they are evidence of momentum, not a like-for-like performance ranking. Apple’s latest results here are for its fiscal 2026 third quarter, ended June 27, 2026. Microsoft’s annual cloud figures are for fiscal years ended in 2024, 2025, and 2026; its latest quarterly figures were reported in July 2026.
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| Measure | Apple | Microsoft |
|---|---|---|
| Latest period in the cited results | Fiscal 2026 Q3, ended June 27, 2026 | Fiscal 2026 annual results and a quarter reported in July 2026 |
| Reported revenue | $109.4 billion in fiscal 2026 Q3, up 16% year over year, according to Apple’s July 30, 2026 release | $331.8 billion in fiscal 2026, as reported by the Associated Press |
| Growth detail | Apple reported double-digit growth across iPhone, Mac, Services, and every geographic segment in fiscal 2026 Q3 | Azure and other cloud services revenue grew 43% year over year in the quarter reported in July 2026, according to the Associated Press |
| Additional operating measure | Fiscal 2026 Q3 gross margin was 50.1%; Apple said tariff refunds added approximately two percentage points | Microsoft Cloud revenue was $214.4 billion in fiscal 2026, $168.9 billion in fiscal 2025, and $137.7 billion in fiscal 2024, according to Microsoft’s fiscal 2026 Form 10-K |
Apple’s fiscal 2026 Q3 diluted earnings per share were $2.02, up 29% year over year; Apple said $0.11 of EPS came from tariff refunds. Those refunds also contributed to the reported gross margin, so neither the margin nor the EPS improvement should be treated as entirely recurring.
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Apple’s investment case rests on its consumer platform: devices and services that can reinforce one another and support ongoing customer demand. In its fiscal 2026 Q3 release, Apple said iPhone, Mac, and Services each set June-quarter revenue records. CEO Tim Cook called it the company’s “strongest June quarter ever.” These are company-reported results and management’s characterization, not a guarantee that the growth rate will persist.
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Apple also announced what Cook described as “the all-new Siri AI” at WWDC26. The announcement indicates product activity, but the cited release does not establish standalone AI revenue or show that AI features will generate future growth. For investors, the relevant question is whether new capabilities make Apple’s products more valuable to customers and help sustain device demand and services engagement.
What could strengthen Apple’s case
- Customers continue to value the device-and-services ecosystem, supporting upgrades and recurring services demand.
- Product execution and new features maintain the appeal of Apple’s platform.
- Growth continues without relying on one-time benefits such as tariff refunds.
What could weaken it
- Hardware demand and upgrade timing may be uneven, making growth more dependent on product cycles.
- Competition, service regulation, supply-chain conditions, and geographic exposure can affect results.
- AI features may not translate into stronger demand or monetization.
Apple’s fiscal 2025 Form 10-K provides annual business and risk context, but its risk discussion is not an exhaustive forecast of what will affect future performance.
Microsoft’s long-term case: cloud scale, with AI returns still to prove
Microsoft’s cloud business offers a clear record of scale and expansion in the reported fiscal-year totals: Microsoft Cloud revenue rose from $137.7 billion in fiscal 2024 to $168.9 billion in fiscal 2025 and $214.4 billion in fiscal 2026, according to Microsoft’s fiscal 2026 Form 10-K. The Associated Press also reported $59.3 billion in Microsoft Cloud revenue for the quarter reported in July 2026 and 43% year-over-year growth in Azure and other cloud services revenue.
Microsoft CEO Satya Nadella said Azure revenue exceeded $100 billion for the first time and Microsoft 365 Copilot had more than 30 million paid seats, according to the Associated Press’s July 2026 coverage. Those figures describe scale and adoption; the paid-seat figure does not establish Copilot’s standalone profitability.
The opportunity
Cloud growth gives Microsoft a large business in which AI services and workloads could contribute to customer demand. If customers continue using these services and Microsoft can charge enough to cover the costs of delivering them, that investment may support further growth.
The execution risk
Microsoft’s fiscal 2026 Form 10-K says its AI and cloud investments require significant capital and operating commitments. Financial success depends on uncertain customer demand and usage, pricing, competition, adoption, and the ability to monetize services sufficiently to recover costs. Cloud growth is evidence of opportunity, not proof that infrastructure spending will produce attractive incremental returns.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to compare the two before choosing
Operating strength and stock attractiveness are different questions. A business can grow quickly and still be a poor investment if its share price already assumes more growth than it can deliver. A useful comparison applies the same date and method to both companies rather than relying on different reporting periods or unsynchronized market data.
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- Entry valuation: Compare measures such as price-to-earnings, free-cash-flow yield, and enterprise value using share prices from the same date and clearly defined financial periods. The figures available here do not establish a synchronized October 7, 2026 valuation snapshot, so they cannot show which stock is cheaper.
- Growth durability: Consider whether Apple can maintain device and services demand across product cycles, and whether Microsoft can sustain cloud growth as AI services develop. Reported growth rates do not by themselves settle how durable future growth will be.
- Margins and cash generation: Separate Apple’s tariff-refund benefits from its underlying results. For Microsoft, consider the costs of expanding cloud and AI infrastructure alongside growth. A complete comparison needs current, comparable cash-flow and margin figures.
- Capital requirements and returns: Apple’s ecosystem depends on continued product and platform investment; Microsoft’s AI opportunity involves substantial infrastructure and operating commitments. The key is not simply how much each spends, but whether that spending produces durable returns.
- Competitive position and execution: Apple must keep its ecosystem relevant and deliver products customers want. Microsoft must convert cloud and AI adoption into economically sustainable services amid competition.
- Shareholder returns and financial position: Dividends, repurchases, cash, and debt can affect the overall investment case. The cited figures do not provide a synchronized comparison of these measures.
Historical results and company statements cannot guarantee future performance. A conclusion about expected stock returns also requires assumptions about future growth, costs, and valuation that these reported figures alone do not provide.
Which stock fits which long-term thesis?
Apple may suit an investor whose thesis emphasizes consumer loyalty, an integrated device-and-services ecosystem, and the ability to maintain product momentum. Microsoft may suit an investor who places greater weight on enterprise software, cloud expansion, and AI adoption—and accepts the risk that infrastructure spending may not earn the expected returns.
Neither profile is a stock recommendation. Without comparable valuation data from a common date, the available results support a conditional business comparison, not a verdict that one is the better long-term bet at its current price. The decision turns on valuation, growth durability, cash generation, capital requirements, competitive position, and execution.
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