Apple Inc. (NASDAQ:AAPL) is the only Magnificent 7 technology stock outperforming the S&P 500 index in 2026, according to Charlie Bilello of Creative Planning. Bilello states this market performance is driven by Apple’s free cash flow generation and its avoidance of an artificial intelligence “spending binge.”
Free Cash Flow Dominance
As of Oct. 31, Apple posted a 26.77% year-to-date return, exceeding the S&P 500’s 10.73% gain. The remaining six companies in the Magnificent 7 are trailing the broader benchmark index, with Nvidia Corp. (NASDAQ:NVDA) returning 10.73%, Microsoft Corp. (NASDAQ:MSFT) returning 7.92%, and Meta Platforms Inc. (NASDAQ:META) declining 6.83%.
Bilello attributes Apple’s singular outperformance to its capital position, noting on X that the company generates “more free cash flow than any other Mag 7 company.”
During his market analysis presentation, Bilello reported that Apple leads its peers with $137 billion in trailing 12-month free cash flow. He observed that investors are increasingly rewarding this financial stability over unchecked spending.
“Markets starting to differentiate here, care more about free cash flow,” Bilello stated. He summarized the current market dynamic by declaring that “free cash flow is king.”
The AI Infrastructure Toll
While Apple maintains its cash generation, other mega-cap technology companies are experiencing financial impacts due to heavy investments in artificial intelligence. Bilello noted that Apple is “largely avoiding the AI spending binge that is draining its hyperscaler peers.”
Bilello highlighted that “a lot of the other Mag 7 members [are] spending a lot on AI infrastructure, [and] because of that, you’re seeing their free cash flow start to decline.”
He cited Meta as a primary example of this trend, pointing out that Meta’s trailing 12-month free cash flow fell from over $50 billion at the start of 2025 to nearly $29 billion.
Bilello emphasized that Meta reported a negative $2 billion free cash flow for the third quarter, which he said was driven by a “massive 80% year-over-year increase in AI infrastructure spending.”
How Has AAPL Performed in 2026?
The stock was higher by 28.09% over the last year, up 26.77% year-to-date, and higher by 3.28% over the last month. It closed 1.23% lower at $344.63 per share on Friday; the stock was up 0.06% in premarket trading on Monday.
Wall Street expects AAPL to report quarterly earnings of $1.99 per share on revenue of $113.38 billion after the closing bell on Monday, according to data from Benzinga Pro.
Benzinga’s Edge Stock Rankings indicate that AAPL maintains a positive price trend in the short, long, and medium terms, with a good quality score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
Related Articles
