Microsoft announced its financial results for Q3 of fiscal year 2026, related to the period between January and March 2026, including an update on its gaming Xbox business.
According to the official documents, including the Form 10-Q SEC filing, Gaming revenue for the company was $5,341 million, down approximately $380 million (-7%) from $5,721 million achieved in the same period of the previous year.
Xbox content and services revenue was down 5% year-on-year, while Xbox hardware revenue was down 33% year-on-year.
The decline in Xbox content and services revenue was down due to the comparison with a year that benefited from strong first-party content performance. It’s worth mentioning that the decline and its extent were expected.
More details and the forecast for the current quarter are likely to be provided later today, during the quarterly conference call.
Looking at the whole company, the results actually broke records, with $82.9 billion in revenue (up 18% year-on-year) and $38.4% billion in operating income (up 20% year-on-year).
As usual, you may be wondering why Microsoft’s financial calendar is different from what we see for most companies, which are currently reporting end-of-year results. Quite simply, Microsoft uses a fiscal year that goes from July to June, unlike the norm, which is from April to March.
If you’re interested in comparing the results announced today with historical data, you can read our article dedicated to the previous quarter’s financial results, announced in February
Other gaming companies have already announced their financial results this quarter, including Koei Tecmo. You can expect plenty more reports on this topic in the coming days and weeks.
