Quick Read – Microsoft’s P/E of 27 and $678 billion contracted backlog make it a stronger long-term value than Apple’s pricier 35 P/E. – Apple returned $33 billion to shareholders last quarter while Microsoft bet $116 billion on AI infrastructure, sending free cash flow down…
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) just closed out fiscal periods that show two very different mega-caps. Apple posted its strongest June quarter ever on iPhone 17 demand, while Microsoft wrapped fiscal 2026 with Azure crossing $100 billion in annual revenue. Both companies grew revenue in the high teens, but the engines driving them are pulling in opposite directions. iPhone Supply Squeeze Meets Azure’s $678 Billion Backlog Apple’s June quarter delivered revenue of $109.42 billion, up 16.36% year over year, with iPhone alone at $54.25 billion.
Tim Cook flagged an unusual problem: demand is outrunning supply. He called the root issue “a demand forecast issue” rather than a broken supply chain. Services hit $30.74 billion, and gross margin got a roughly 2 percentage point lift from tariff refunds.