Magnificent Seven Earnings Show Signs of Robust Growth

The Magnificent Seven Earnings reports have been rolling in, and so far, six of the group's members have delivered solid results. Microsoft and Apple led the pack with impressive growth.

Apple reported its strongest June-quarter period ever, with quarterly revenue reaching $109.4 billion, a 16% year-over-year increase. Adjusted earnings per share (EPS) came in at $2.02, growing an even stronger 29% from the previous year. Apple's installed base of active devices reached an all-time high across major product categories.

The company's iPhone sales came in at $54.3 billion and grew by 21.6% year-over-year. The Services category also saw significant growth, with quarterly sales reaching $30.7 billion, a 12% increase from the previous year. Apple's cash-generating abilities continue to impress investors.

Microsoft posted double-beat relative to consensus expectations, with sales growing by 18% YoY alongside 23% YoY growth in earnings. Its Intelligent Cloud results include Azure, its cloud computing platform that provides AI computing power to businesses. The growth rate here is mightily important from a sentiment standpoint, showing an acceleration relative to recent periods.

Enterprise adoption of Copilot surged throughout its FY26 to over 30 million paid seats, further underpinning the momentum the company is enjoying thanks to its AI-related investments.