Microsoft Surges Past $100 Billion in Annual Revenue Amidst Apple's Memory Pricing Woes

Apple and Microsoft both reported strong quarters, but only one of them stands out as a cleaner buy. Apple's revenue hit $109.42 billion, up 16.4% year over year, thanks to its strongest June quarter ever. The iPhone 17 cycle was the main engine behind this growth, with iPhone alone bringing in $54.3 billion, up 22%. However, not everything is rosy at Apple. Memory pricing is a headache, and Tim Cook admitted that the company 'reluctantly raised prices' due to a '100-year flood on memory pricing.'

Microsoft's quarter was arguably cleaner. Revenue reached $90.01 billion, up 17.8%, with Azure growing 43% year over year and pushing it past $100 billion in annual revenue for the first time. Satya Nadella said that demand continues to exceed available supply.

The strategic split between Apple and Microsoft is wide. While Apple is monetizing its installed base of billions through pricier iPhones and a growing Services annuity, Microsoft is spending heavily on capital expenditures, with FY26 capex running $115.95 billion, up 79.6%. This has led to concerns about overbuilding, but the demand signals are hard to argue with.