"Revenue is up 17 percent, and net income has increased by 23 percent. The holiday quarter saw PC shipments grow unexpectedly amid an ongoing RAM shortage. Microsoft's end of Windows 10 support helped push PC shipments up, but IDC revealed earlier this month that PC makers have also been aggressively pulling forward inventory to combat potential tariffs and ongoing global memory shortage."
"Microsoft's Windows OEM and devices revenue over this holiday period was up just 1 percent year-over-year. Businesses and consumers have clearly been upgrading PCs and laptops during the Windows 10 end of life period, because Windows OEM revenue on its own was up 5 percent. But this revenue was offset by a decline in devices revenue as Microsoft combines Surface revenue and Windows OEM revenue together now."
"Xbox content and services, which includes Game Pass, is down 5 percent, too. This decline is largely being attributed to stronger first-party content performance in the previous year, and not the Game Pass Ultimate price hike during the quarter. Unsurprisingly, Microsoft isn't giving us an update on Xbox Game Pass subscriber numbers. The company last reported it had 34 million subscribers nearly two years ago, which included Xbox Game Pass Essential (previously Xbox Live"
Microsoft reported $81.3 billion revenue and $30.9 billion net income in the second quarter of fiscal 2026, with revenue up 17% and net income up 23%. PC shipments grew during the holiday quarter amid a RAM shortage and Windows 10 end-of-support, with PC makers pulling forward inventory to mitigate tariffs and memory shortages. Windows OEM revenue rose 5% while combined Windows OEM and devices revenue increased just 1% as devices revenue declined. No new Surface devices were announced in the quarter; previous Surface launches occurred in May. Xbox hardware revenue fell 32% year-over-year and overall gaming revenue declined 9%. Xbox content and services dropped 5%; Game Pass subscriber numbers were not updated, with the last reported figure at 34 million nearly two years ago.
Read at The Verge
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