AAPL vs NVDA vs MSFT in 2026: Margins, Valuation and Cash Flow Compared

◊ SOURCE LOCK

As of August 25, 2026 market close

DATA LOADED

Source: stockanalysis.com · Apple FY2026 Q3 statements

SEC 00 · LOCK

◊ COMPARISON MATRIX

Metric	AAPL	NVDA	MSFT	Definition	Source
Market cap	$4.52T	$5.16T	$3.65T	Equity market value from share price and shares outstanding.	Provider field / filing line item
Trailing P/E	35.60x	31.93x	27.15x	Market price per share divided by earnings per share, or market cap divided by net income when using aggregate values.	Filing line item + provider market data
EV/EBITDA	26.56x	30.84x	19.00x	Enterprise value divided by EBITDA.	Filing line item + provider market data
Gross margin	48.65%	74.15%	67.94%	Gross profit divided by revenue.	Filing line item
Operating margin	33.17%	64.02%	46.78%	Operating income divided by revenue. Drives the selection rule below.	Filing line item
Net margin	27.62%	62.97%	40.31%	Net income divided by revenue.	Filing line item
ROE	148.75%	114.29%	34.04%	Net income divided by average shareholders' equity.	Filing line item
FCF yield	3.02%	2.31%	1.84%	Free cash flow divided by market cap.	Filing line item + provider market data

SEC 01 · MATRIX

◊ SELECTION RULE

DECISION GATE

Selection rule: lowest operating margin

Refresh the Operating margin cells for AAPL, NVDA, and MSFT from the chosen source.
Compare the three refreshed operating margin values on the same period basis.
Select the company with the lowest operating margin for the four-quarter trend table.
If periods or accounting bases differ, normalize the period basis before selecting.

SEC 02 · GATE

◊ FOUR-QUARTER TREND

Apple's latest four fiscal quarters — lowest operating margin of the three

AAPL carries the lowest operating margin of AAPL, NVDA, and MSFT. Quarters shown on a consistent fiscal basis.

Line item	Q4 FY2025	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	$102.466B	$143.756B	$111.184B	$109.417B
Gross margin	47.18%	48.16%	49.27%	50.06%
Operating margin	31.65%	35.37%	32.27%	32.62%
Net income	$27.466B	$42.097B	$29.578B	$29.789B

SEC 03 · TREND

◊ INTERPRETATION RULES

What the numbers say

MARGINSAAPL runs the lowest operating margin of the three at 33.17%, versus NVDA's 64.02% and MSFT's 46.78%. NVDA leads both operating and net margins (62.97%).
AAPL GROSS MARGINApple's gross margin rose in every listed quarter, from 47.18% in Q4 FY2025 to 50.06% in Q3 FY2026.
AAPL OPERATING MARGINApple's operating margin peaked in Q1 FY2026 at 35.37%, fell to 32.27% in Q2, then recovered slightly to 32.62% in Q3 — not a continuous decline.
VALUATION & CASHAAPL has the highest free-cash-flow yield (3.02%) but also the highest trailing P/E (35.60x). MSFT has the lowest P/E (27.15x) and EV/EBITDA (19.00x) yet the lowest FCF yield (1.84%). NVDA carries the highest EV/EBITDA (30.84x).

Conclusion: NVDA leads on profitability, MSFT on valuation, and AAPL on cash generation — Apple's thinner, recently choppy operating margin is the key trade-off against its top free-cash-flow yield.

SEC 04 · INTERP

◊ DECISION NOTES

Decision notes

Valuation context:MSFT screens cheapest on P/E (27.15x) and EV/EBITDA (19.00x); AAPL richest on P/E (35.60x).

Margin risk:AAPL holds the thinnest operating margin (33.17%) with mixed recent quarterly movement.

Cash-flow quality:AAPL offers the highest FCF yield (3.02%); MSFT the lowest (1.84%).

Source checks:Reconcile against the linked statistics pages and Apple's Q3 FY2026 statements before acting.

Decision action:Weigh NVDA's margin lead and MSFT's cheaper multiples against AAPL's cash generation.

SEC 05 · NOTES

◊ DATA NOTE

Market metrics reflect the August 25, 2026 market close and can change with subsequent trading and filings. Verify against the latest figures before acting. Sources: Apple statistics, NVIDIA statistics, Microsoft statistics, and Apple Q3 FY2026 financial statements.

SEC 06 · NOTE