Microsoft reports $37B AI annual run rate, up 123%, while Apple focuses on shareholder returns with a $100B buyback.
Microsoft posted Q2 revenue of $82.89 billion, up 18.3% year-over-year, driven by Azure growth of 40% and a $627 billion commercial backlog. The company’s AI annual run rate reached $37 billion, a 123% increase, with 20 million Copilot paid seats growing 250% YoY.
Apple reported $111.18 billion in revenue, up 16.6%, with iPhone sales at $57 billion and Services at a record $30.98 billion. Earnings per share were $2.01, beating consensus of $1.94. While Apple embeds AI gradually, Microsoft’s generative AI monetization is scaling rapidly.
Microsoft guided 2026 capital expenditures to roughly $190 billion, contrasting Apple’s $100 billion buyback authorization. The divergence highlights Microsoft’s expansion focus versus Apple’s shareholder returns strategy.