(UPD) Microsoft's revenue rises 19%, but XBOX lags behind
, by Thibaut
Updated October 29, 2026, at 12:54 a.m.
Asha Sharma, president of Xbox, posted a message on X to discuss the latest financial results for Microsoft’s gaming division.
"In Q1, XBOX revenue declined 2% YoY, compared with a 10% decline a quarter ago, while our accountability margin improved. Minecraft and WoW Forever set records, Call of Duty had its most acclaimed release in more than a decade, and our PC platform revenue grew double digits. Console sales remain constrained by supply, with more demand than consoles available. We’re working to get more consoles into players’ hands, including through our expanded refurbishment program. We’re making progress, with a lot more work ahead."
Original Article
It’s time to talk big numbers! Microsoft has just released its results for the first quarter of fiscal year 2027 (ended September 30, 2026). Overall, the American company is doing very well, with revenue up 19% year-over-year to $92.3 billion.
Unfortunately, Xbox isn’t experiencing such positive momentum, as the gaming division reported a 2% decline in revenue from content and services. The hardware segment is struggling even more, with a significant 14% drop. Asha Sharma and her teams haven’t yet fully returned to a growth trajectory. Further layoffs will be announced in the coming weeks.
In contrast, Azure’s revenue rose 48% (to $33.17 billion), marking a dramatic acceleration in the cloud division’s growth. Overall, Microsoft exceeded analysts’ expectations with a net profit of $36.63 billion, compared to $27.75 billion a year earlier.
Source: microsoft.com