Microsoft has delivered a powerhouse performance for the second quarter of fiscal year 2026, posting $81.3 billion in revenue and a net income of $30.9 billion. Despite a cooling console market and a sharp drop in Xbox hardware sales, the tech giant saw its total revenue climb 17%, driven largely by a historic milestone in its cloud business. The company’s "Intelligent Cloud" division, which includes Azure, surpassed $50 billion in quarterly revenue. While total gaming revenue dipped 9% ($623 million) this quarter, due to a tough comparison against last year’s record-breaking Call of Duty: Black Ops 6 launch. Xbox hardware revenue plunged 32% this quarter, marking the third consecutive year of decline, as reported by The Verge.