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Microsoft's AI Bet Pays Off As Azure Hits $100B Amid Xbox Slump
['Paul Lilly']
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While overall company revenue climbed to $90 billion for a modest 18% year-over-year gain, the $100 billion in full-year revenue for Azure tells the real story.
Azure revenue crossing the $100 billion threshold is a clear signal of strong and continued AI growth, fueled by sustained enterprise AI adoption.
Microsoft's More Personal Computing business dipped 4% to $12.9 billion, with Windows OEM and Devices revenue decreasing 7% and Xbox content and services sliding 10%.
Despite some initial pains, both Microsoft and Sharma remain confident in the long-term trajectory of the Xbox division.
In FY26, over 200 million new players came to XBOX and our games, but our business did not grow with our audience.