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Microsoft's Azure growth and backlog make it a cleaner buy than Apple despite Apple's strong iPhone sales.

Company Fundamentals
14 Sep 2026
24/7 Wall Street
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Bullish
Microsoft's Azure growth and backlog make it a cleaner buy than Apple despite Apple's strong iPhone sales.

Apple and Microsoft both reported strong Q3 results, with Apple posting its best June quarter driven by iPhone 17 sales and Microsoft hitting a $100 billion annual revenue milestone for Azure. Apple's growth was boosted by tariff refunds and rising memory costs, while Microsoft showed robust demand for its cloud services and AI products, backed by a massive $678 billion commercial backlog. Microsoft trades at a lower P/E and offers clearer enterprise AI monetization, making it the preferred investment choice over Apple, which faces margin pressures and a higher valuation. Investors should watch Apple's upcoming quarter guidance and Microsoft's ability to convert its backlog into earnings.

Apple trades at USD 333.90, up 0.49% on Pluang as of Sep 14, 2026 20:12 WIB. Microsoft is priced at USD 497.65, gaining 0.41% in the same session. Both tech giants hold massive market caps, with Apple at $4.85 trillion and Microsoft at $3.68 trillion, reflecting their strong market presence amid ongoing investor interest.

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