Microsoft FY26 Q4 Earnings

microsoft.com

6 pointscorvad5 comments

> Windows OEM and Devices revenue decreased 7%; XBOX content and services revenue decreased 10%; Search advertising revenue excluding traffic acquisition costs increased 10% (up 9% in constant currency)

This part is concerning though.

Somewhat, but not totally unexpected:

1. Xbox is a known mess right now. Probably 2 or 3 years before it is sorted out or spun off as its own venture.

2. Windows devices are bread and butter of enterprises and I suspect most companies are holding off on hardware refreshes due to costs.

3. No idea about the search thing.

On 3. Maybe copilot is replacing tasks that Bing previously had? Just a thought as they are two separate products compared to Google's more integrated Gemini in search and the other way around.

my workplace just gave me a new laptop. It has a slightly faster cpu, the same 16gb of ram I always had, no fingerprint reader, no card reader. One less usb-c port as well as one less normal usb port. Apart from the CPU, everything else is unchanged or a downgrade.

But it has a copilot key!

> This year, Azure revenue surpassed $100 billion for the first time

Not unexpected but still crazy to see. It's a great time to be a hyper scaler.

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