Comparative Analysis of Apple and Microsoft's Earnings Reports
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 59 minutes ago
0mins
Source: Fool
- Apple Revenue Growth: Apple reported $111.2 billion in sales for Q1 2026, reflecting a 17% year-over-year increase, with its services segment reaching an all-time high of $31 billion, demonstrating the ongoing appeal of its products and services.
- Microsoft AI Expansion: Microsoft achieved $82.9 billion in sales for Q1 2026, marking an 18% year-over-year growth, with its AI business exceeding an annual revenue run rate of $37 billion, showcasing a remarkable 123% increase year-over-year, indicating successful investments in AI.
- Increased Capital Expenditures: Microsoft’s capital expenditures rose to $31.9 billion, a 49% year-over-year increase, which, despite investor concerns over spending, is expected to support its AI expansion strategy and ensure future growth potential.
- Positive Market Reaction: Apple’s stock soared to a 52-week high of $311.40 on May 22, 2026, as the market reacted favorably to the appointment of its new CEO, reflecting investor confidence in the company’s future direction.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AAPL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 304.990
Low
239.00
Averages
306.89
High
350.00
Current: 304.990
Low
239.00
Averages
306.89
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, Wearables, Home and Accessories. Its services include advertising, AppleCare, cloud services, digital content, and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its wearables include smartwatches, wireless headphones, and spatial computers. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Comparative Analysis of Apple and Microsoft's Earnings Reports
- Apple Revenue Growth: Apple reported $111.2 billion in sales for Q1 2026, reflecting a 17% year-over-year increase, with its services segment reaching an all-time high of $31 billion, demonstrating the ongoing appeal of its products and services.
- Microsoft AI Expansion: Microsoft achieved $82.9 billion in sales for Q1 2026, marking an 18% year-over-year growth, with its AI business exceeding an annual revenue run rate of $37 billion, showcasing a remarkable 123% increase year-over-year, indicating successful investments in AI.
- Increased Capital Expenditures: Microsoft’s capital expenditures rose to $31.9 billion, a 49% year-over-year increase, which, despite investor concerns over spending, is expected to support its AI expansion strategy and ensure future growth potential.
- Positive Market Reaction: Apple’s stock soared to a 52-week high of $311.40 on May 22, 2026, as the market reacted favorably to the appointment of its new CEO, reflecting investor confidence in the company’s future direction.
See More
Warren Buffett's Top Three Stocks for Lifetime Holding
- Apple's Strong Performance: In the fiscal second quarter of 2026, Apple reported a 21% year-over-year increase in iPhone sales, while its high-margin services segment grew by 17%, demonstrating its sustained competitiveness in the smartphone market and customer loyalty, thereby creating long-term wealth for shareholders.
- Coca-Cola's Resilience: As Buffett's favorite stock, Coca-Cola achieved a 12% year-over-year growth and a 19% increase in operating income in the first quarter of 2026, showcasing its strong market adaptability through pricing power and localized production to successfully navigate high inflation.
- American Express's Unique Advantages: American Express differentiates itself with its closed-loop model and membership targeting affluent clients, ensuring diverse revenue streams; under Buffett's leadership, the company has maintained its long-term investment in Amex, highlighting its stability and growth potential in the financial services sector.
- Attractive Dividend Yields: All three companies offer stable dividends, with Coca-Cola's yield at 2.5% and American Express at 1.09%, making them significantly appealing to long-term investors seeking reliable income streams.
See More
Buffett's Three Favorite Stocks Worth Holding Forever
- Apple's Ecosystem: Apple's iPhone sales surged 21% year-over-year in Q2 2026, while its high-margin services segment grew by 17%, indicating strong customer loyalty and recurring revenue streams, solidifying its status as a 'forever' stock.
- Coca-Cola's Resilience: Coca-Cola achieved a 12% year-over-year increase and a 19% rise in operating income in Q1 2026, showcasing its pricing power and product adaptability in a high-inflation environment, reinforcing its status as a 'Dividend King' with a 64-year streak of dividend increases.
- American Express's Unique Model: American Express differentiates itself with a closed-loop model and membership system targeting affluent clients, ensuring revenue stability across economic conditions, while its growing dividend and strong brand loyalty position it as a premium blue-chip stock for long-term investment.
- Buffett's Investment Philosophy: Buffett's admiration for Apple, Coca-Cola, and American Express reflects his focus on excellent management, strong cash positions, and durable competitive advantages, making these stocks valuable for long-term investment.
See More
Warren Buffett's Three Favorite Stocks Worth Holding Forever
- Apple's Sustained Growth: In the fiscal second quarter of 2026, Apple reported a 21% year-over-year increase in iPhone sales and a 17% rise in its high-margin services segment, demonstrating strong market demand and customer loyalty, thereby creating long-term wealth for shareholders.
- Coca-Cola's Resilience: Coca-Cola achieved a 12% year-over-year growth and a 19% increase in operating income in the first quarter of 2026, successfully navigating high inflation through pricing power and localized production, showcasing its stability as a 'Dividend King'.
- American Express's Unique Advantages: American Express differentiates itself with its closed-loop model and membership targeting affluent clients, ensuring diverse revenue streams and customer loyalty, while maintaining steady dividend payments under new CEO Abel, highlighting its long-term investment value.
- Buffett's Investment Philosophy: Buffett's preference for Apple, Coca-Cola, and American Express reflects his emphasis on excellent management and strong cash flow, providing strategic guidance for new CEO Abel's investment decisions and ensuring the company's continued growth in the future.
See More
Nvidia's Q1 Earnings Impress with Huge Dividend Increase
- Earnings Highlights: Nvidia reported $81.6 billion in quarterly revenue for Q1 FY2027, reflecting a 20% quarter-over-quarter and 85% year-over-year increase, showcasing its robust performance in the chip market and solidifying its industry leadership.
- Significant Dividend Increase: The board approved an $80 billion share repurchase authorization and raised the quarterly dividend from $0.01 to $0.25 per share, projecting an annual payout of $24.3 billion, which underscores its strong cash flow and commitment to shareholder returns.
- New Business Model: Nvidia anticipates generating $20 billion in revenue this year from its newly launched Vera Rubin central processing units, indicating its ability to expand in the AI sector and reduce reliance on one-time chip sales.
- Market Outlook: Despite risks of overestimating AI demand, Nvidia's P/E ratio stands at just 33.7, reflecting market confidence in its future growth, particularly driven by the ongoing AI spending cycle, which is expected to sustain strong profitability.
See More
Nvidia Boosts Dividend and Share Buyback Plan Significantly
- Strong Financial Performance: Nvidia reported $81.6 billion in quarterly revenue for Q1 FY2027, reflecting a 20% quarter-over-quarter and 85% year-over-year increase, showcasing robust cash flow growth that supports higher dividend payouts.
- Significant Dividend Increase: The board approved an $80 billion share buyback authorization and raised the quarterly dividend from $0.01 to $0.25 per share, marking a pivotal step in Nvidia's evolution into a mature tech giant.
- Expansion in AI Inference Market: Nvidia expects $20 billion in revenue this year from its new Vera Rubin central processing units, indicating its potential in the AI inference market and the development of new revenue streams.
- Strategic Investment and Risks: Despite a 2400% increase in dividends, Nvidia will pay about $6.08 billion quarterly in dividends, yet it maintains sufficient cash flow to support business expansion and shareholder returns, while facing risks of overestimating AI demand.
See More
Comparative Analysis of Apple and Microsoft's Earnings Reports
- Apple Revenue Growth: Apple reported $111.2 billion in sales for Q1 2026, reflecting a 17% year-over-year increase, with its services segment reaching an all-time high of $31 billion, demonstrating the ongoing appeal of its products and services.
- Microsoft AI Expansion: Microsoft achieved $82.9 billion in sales for Q1 2026, marking an 18% year-over-year growth, with its AI business exceeding an annual revenue run rate of $37 billion, showcasing a remarkable 123% increase year-over-year, indicating successful investments in AI.
- Increased Capital Expenditures: Microsoft’s capital expenditures rose to $31.9 billion, a 49% year-over-year increase, which, despite investor concerns over spending, is expected to support its AI expansion strategy and ensure future growth potential.
- Positive Market Reaction: Apple’s stock soared to a 52-week high of $311.40 on May 22, 2026, as the market reacted favorably to the appointment of its new CEO, reflecting investor confidence in the company’s future direction.
See More
Warren Buffett's Top Three Stocks for Lifetime Holding
- Apple's Strong Performance: In the fiscal second quarter of 2026, Apple reported a 21% year-over-year increase in iPhone sales, while its high-margin services segment grew by 17%, demonstrating its sustained competitiveness in the smartphone market and customer loyalty, thereby creating long-term wealth for shareholders.
- Coca-Cola's Resilience: As Buffett's favorite stock, Coca-Cola achieved a 12% year-over-year growth and a 19% increase in operating income in the first quarter of 2026, showcasing its strong market adaptability through pricing power and localized production to successfully navigate high inflation.
- American Express's Unique Advantages: American Express differentiates itself with its closed-loop model and membership targeting affluent clients, ensuring diverse revenue streams; under Buffett's leadership, the company has maintained its long-term investment in Amex, highlighting its stability and growth potential in the financial services sector.
- Attractive Dividend Yields: All three companies offer stable dividends, with Coca-Cola's yield at 2.5% and American Express at 1.09%, making them significantly appealing to long-term investors seeking reliable income streams.
See More
Buffett's Three Favorite Stocks Worth Holding Forever
- Apple's Ecosystem: Apple's iPhone sales surged 21% year-over-year in Q2 2026, while its high-margin services segment grew by 17%, indicating strong customer loyalty and recurring revenue streams, solidifying its status as a 'forever' stock.
- Coca-Cola's Resilience: Coca-Cola achieved a 12% year-over-year increase and a 19% rise in operating income in Q1 2026, showcasing its pricing power and product adaptability in a high-inflation environment, reinforcing its status as a 'Dividend King' with a 64-year streak of dividend increases.
- American Express's Unique Model: American Express differentiates itself with a closed-loop model and membership system targeting affluent clients, ensuring revenue stability across economic conditions, while its growing dividend and strong brand loyalty position it as a premium blue-chip stock for long-term investment.
- Buffett's Investment Philosophy: Buffett's admiration for Apple, Coca-Cola, and American Express reflects his focus on excellent management, strong cash positions, and durable competitive advantages, making these stocks valuable for long-term investment.
See More
Warren Buffett's Three Favorite Stocks Worth Holding Forever
- Apple's Sustained Growth: In the fiscal second quarter of 2026, Apple reported a 21% year-over-year increase in iPhone sales and a 17% rise in its high-margin services segment, demonstrating strong market demand and customer loyalty, thereby creating long-term wealth for shareholders.
- Coca-Cola's Resilience: Coca-Cola achieved a 12% year-over-year growth and a 19% increase in operating income in the first quarter of 2026, successfully navigating high inflation through pricing power and localized production, showcasing its stability as a 'Dividend King'.
- American Express's Unique Advantages: American Express differentiates itself with its closed-loop model and membership targeting affluent clients, ensuring diverse revenue streams and customer loyalty, while maintaining steady dividend payments under new CEO Abel, highlighting its long-term investment value.
- Buffett's Investment Philosophy: Buffett's preference for Apple, Coca-Cola, and American Express reflects his emphasis on excellent management and strong cash flow, providing strategic guidance for new CEO Abel's investment decisions and ensuring the company's continued growth in the future.
See More
Nvidia's Q1 Earnings Impress with Huge Dividend Increase
- Earnings Highlights: Nvidia reported $81.6 billion in quarterly revenue for Q1 FY2027, reflecting a 20% quarter-over-quarter and 85% year-over-year increase, showcasing its robust performance in the chip market and solidifying its industry leadership.
- Significant Dividend Increase: The board approved an $80 billion share repurchase authorization and raised the quarterly dividend from $0.01 to $0.25 per share, projecting an annual payout of $24.3 billion, which underscores its strong cash flow and commitment to shareholder returns.
- New Business Model: Nvidia anticipates generating $20 billion in revenue this year from its newly launched Vera Rubin central processing units, indicating its ability to expand in the AI sector and reduce reliance on one-time chip sales.
- Market Outlook: Despite risks of overestimating AI demand, Nvidia's P/E ratio stands at just 33.7, reflecting market confidence in its future growth, particularly driven by the ongoing AI spending cycle, which is expected to sustain strong profitability.
See More
Nvidia Boosts Dividend and Share Buyback Plan Significantly
- Strong Financial Performance: Nvidia reported $81.6 billion in quarterly revenue for Q1 FY2027, reflecting a 20% quarter-over-quarter and 85% year-over-year increase, showcasing robust cash flow growth that supports higher dividend payouts.
- Significant Dividend Increase: The board approved an $80 billion share buyback authorization and raised the quarterly dividend from $0.01 to $0.25 per share, marking a pivotal step in Nvidia's evolution into a mature tech giant.
- Expansion in AI Inference Market: Nvidia expects $20 billion in revenue this year from its new Vera Rubin central processing units, indicating its potential in the AI inference market and the development of new revenue streams.
- Strategic Investment and Risks: Despite a 2400% increase in dividends, Nvidia will pay about $6.08 billion quarterly in dividends, yet it maintains sufficient cash flow to support business expansion and shareholder returns, while facing risks of overestimating AI demand.
See More
