Apple vs. Microsoft: What Their Revenue Trends Reveal for Investors
Key Points
Microsoft currently demonstrates a steadier and more consistent upward revenue trajectory, while Apple generates a noticeably higher overall volume of sales despite its fluctuations.
Apple experiences sharp quarter-over-quarter variations with massive seasonal spikes at the end of each calendar year, whereas Microsoft maintains a much more stable sequential growth pattern.
Investors should watch whether the two companies see their revenue gap narrow further or if the current historical trends persist over the coming quarters.
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Apple: Massive Scale With Seasonal Spikes
Apple (NASDAQ:AAPL) designs and markets smartphones, personal computers, tablets, and wearables worldwide, and it operates various platforms like the App Store alongside subscription-based services such as Apple TV+ and Apple Music.
It recently announced an expansion of its specialized data centers and introduced lower-priced smartphone models. The company reported an approximately 27% net income margin for the quarter ended March 28, 2026.
Microsoft: Steady Quarter-Over-Quarter Gains
Microsoft (NASDAQ:MSFT) develops and licenses software, cloud services, and devices globally, operating primarily through its Productivity and Business Processes, Intelligent Cloud, and More Personal Computing segments.
While implementing a voluntary retirement program and targeted workforce reductions to redirect resources toward new infrastructure in support of artificial intelligence, it generated an approximately 46% EBIT margin for the quarter ended March 31, 2026.
Why Revenue Matters for Retail Investors
Revenue represents the total money brought in before any expenses are subtracted, which helps investors gauge a company's overall sales momentum and track its historical growth trajectory.
Image source: The Motley Fool.
Quarterly Revenue for Apple and Microsoft
| Quarter (Period End) | Apple Revenue | Microsoft Revenue |
|---|---|---|
| Q2 2024 | $85.8 billion (period ended June 2024) | $64.7 billion (period ended June 2024) |
| Q3 2024 | $94.9 billion (period ended Sept. 2024) | $65.6 billion (period ended Sept. 2024) |
| Q4 2024 | $124.3 billion (period ended Dec. 2024) | $69.6 billion (period ended Dec. 2024) |
| Q1 2025 | $95.4 billion (period ended March 2025) | $70.1 billion (period ended March 2025) |
| Q2 2025 | $94.0 billion (period ended June 2025) | $76.4 billion (period ended June 2025) |
| Q3 2025 | $102.5 billion (period ended Sept. 2025) | $77.7 billion (period ended Sept. 2025) |
| Q4 2025 | $143.8 billion (period ended Dec. 2025) | $81.3 billion (period ended Dec. 2025) |
| Q1 2026 | $111.2 billion (period ended March 2026) | $82.9 billion (period ended March 2026) |
Data source: Company filings. Data as of May 19, 2026.
Foolish Take
Comparing revenue trends between Apple and Microsoft reveal the former’s penchant for seasonal swings, with the fourth quarter’s holiday period being its biggest sales driver. Microsoft is steadily growing revenue thanks to the AI tailwind.
Even so, Christmas came early for Apple this year as its stock soared to a 52-week high of $311.40 on May 22. The company is getting a new CEO on Sept. 1, which has been viewed favorably by Wall Street, and the company posted strong results for its fiscal Q2 ended March 28. Its $111.2 billion in sales represented excellent 17% year-over-year growth, with revenue from its services segment reaching an all-time high of $31 billion.
Microsoft’s stock took a hit earlier in 2026, dropping to a 52-week low of $356.28 on March 30, as investors became concerned the company was spending too much on tech infrastructure. Its capital expenditures of $31.9 billion was a 49% year-over-year increase.
However, that spending supports Microsoft’s AI expansion. Its $82.9 billion in sales for its fiscal third quarter, ended March 31, represented 18% year-over-year growth, as its AI business exceeded an annual revenue run rate of $37 billion, up a whopping 123% year over year.
The year-over-year sales growth for Microsoft and Apple highlight the success of their respective businesses. These former rivals are headed in different directions as Microsoft focuses on AI while Apple continues to capitalize on the appeal of its products and services.
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Robert Izquierdo has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool has a disclosure policy.
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