Microsoft FY24 Q2 earnings: Windows OEM thrived, Xbox earnings skyrocketed

The Activision Blizzard acquisition played a big part.

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Key notes

  • Microsoft announced its Q2 earnings for fiscal year 2024.
  • The company made a total of $62 billion in revenue and $21,9 billion in net income.
  • Windows OEM and Xbox thrived, while Surface sales, despite new releases, fell off by 9%.

Microsoft has unveiled its financial results for the second quarter (Q2) of its fiscal year 2024 (FY24). The company had quite a busy year: the successful Activision Blizzard acquisition is now making up a big percentage of Xbox earnings’ increase, while Windows OEM (original equipment manufacturer) sales picked up last year’s positive trend.

Last year, Microsoft lost roughly $337 million in Windows revenue in FY23 Q4, to which OEM sales’ 12% decrease contributed largely at that time. The number in FY24 Q1 (October 2023) slightly picked up a 4% growth, and now, Microsoft recorded another 11% increase in OEM revenue growth. 

Besides, Microsoft’s big win in the Xbox division primarily stemmed from the impressive performance of Activision Blizzard’s numbers. In particular, Xbox content and services revenue, including the Game Pass subscriptions, surged by a remarkable 61%.

Microsoft’s revenue in total clocks at around $62 billion (an 18% increase) and made a net income of $21,9 billion, although it suffered a 9% decrease in device revenue despite launching new Surface devices last year.

“By infusing AI across every layer of our tech stack, we’re winning new customers and helping drive new benefits and productivity gains across every sector,” says Microsoft’s boss, Satya Nadella.