Microsoft Surges Past $100 Billion in Annual Azure Revenue

Apple and Microsoft both reported strong earnings in their latest quarters, but only one of these tech giants stands out as a cleaner buy. Apple posted its strongest June quarter ever with revenue reaching $109.42 billion, up 16.4% year over year. The iPhone alone contributed $54.3 billion to this total, growing 22%. However, the company's margins were helped by a one-time tariff refund of about 2 percentage points and $0.11 per share.

Microsoft's quarter was arguably cleaner, with revenue reaching $90.01 billion, up 17.8%, and EPS coming in at $4.74. Azure growth was particularly notable, hitting 43% year over year and pushing it past $100 billion in annual revenue for the first time. Satya Nadella said 'Demand continues to exceed available supply.'

The strategic split between Apple and Microsoft is wide. Apple is monetizing an installed base of billions through pricier iPhones and a growing Services annuity, while betting on-device Siri AI becomes a competitive weapon. However, memory pricing is a headache for the company.