Microsoft Reports 22% Decline in Windows OEM and Devices Revenue
What happened
Microsoft reported Q3 2026 results with $92.3 billion in revenue, up 19% year-over-year, but the Windows 11 OEM licensing and Surface PCs segment generated $3.6 billion this quarter, a significant drop from the $4.6 billion last year, a 22% year-over-year decline, making it the only business unit, alongside Xbox, to experience a downturn. The causes stated in the source include: a drop in consumer PC demand caused by rising prices, which directly resulted in fewer Windows 11 licenses sold to major PC OEMs like ASUS, HP, Dell, and Lenovo; Surface PC shipments have seemingly declined, as these products are historically priced for mid-tier to high-end buyers; and recent increases in memory and storage supply chain costs affected Microsoft's procurement, general price increases followed, and consumers are opting to wait for another opportunity to purchase a PC.
Impact and signal
Affected components and suppliers
Source and time
Source: TechPowerUp · 10/29/2026 · View original source
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