Apple's capital-light model is outperforming Microsoft's capex-heavy strategy, with Apple shares up 41.75% over the past year while Microsoft fell 24.42%. Microsoft's full-year FY25 capex hit $64.55 billion, consuming 47.4% of operating cash flow, and free cash flow declined 3.32% despite revenue growth. In contrast, Apple's Q1 FY26 capex was just $2.37 billion, or 4.4% of operating cash flow, and the company authorized a fresh $100 billion buyback while Services revenue reached a record $30.98 billion. Apple posted $111.18 billion in quarterly revenue, up 16.6%, with double-digit growth across all geographic segments and its eighth straight earnings beat. The relative setup favors Apple's cash-return model over Microsoft's capex cycle until the spending math changes.
Apple Inc.Apple authorized a $100 billion buyback, signaling strong cash return to shareholders.
Microsoft CorporationMicrosoft's heavy capex ($64.55B) consumed 47.4% of operating cash flow, and free cash flow declined 3.32%.