Revenue reached $109.90 billion, up 21.8% year over year and beating the $107.03 billion estimate by 2.67%. EPS landed at $5.11 versus the $2.63 consensus, a 94.10% beat. Net income hit $62.58 billion, including $36.91 billion in unrealized equity gains. Operating income reached $39.70 billion at a 36.1% operating margin.
Microsoft reported Wednesday that its Gaming revenue fell 9 percent, while Xbox content and services revenue decreased 5 percent in the second quarter for FY 2026. During its earnings call for the quarter ended December 31, the company said its overall revenue was up 17 percent driven by its Cloud business, but the Gaming division fell across different metrics. Xbox content and services revenue was below expectations and fell 5 percent year-on-year, Microsoft CFO Amy Hood confirmed during the earnings call.