Blizzard reportedly finished FY26 as the best-performing studio in Xbox’s studios division, based on an internal email attributed to Blizzard President Johanna Faries. Faries reportedly said Blizzard had over-delivered on Microsoft’s projections during the fiscal year. Windows Central reported that it obtained the message, which was sent to Blizzard employees ahead of BlizzCon 2026. The 2026 event would also be Blizzard’s first BlizzCon since 2023.
The reported comparison put Blizzard ahead of other major Xbox gaming operations, including Activision, King, and Bethesda. Those groups include some of the company’s biggest properties, such as Call of Duty, Candy Crush, Fallout, and The Elder Scrolls.
Faries reportedly described the fiscal year as Blizzard’s third-highest revenue year. The message also said the company recorded consecutive quarters of growth for the first time since Overwatch launched in 2016.
The message reportedly characterized fiscal 2026 and fiscal 2027 as Blizzard’s first back-to-back growth years in nearly a decade.
The email reportedly described Blizzard as a limited-integration entity that continues to operate separately from Activision. Faries also reportedly said the performance would give Blizzard more room to invest in its games and staff.
Diablo 4: Lord of Hatred and Overwatch received specific praise in the email. Overwatch reportedly delivered its strongest quarter since 2022, adding another strong result to Blizzard’s performance claims for the year.
Recent Overwatch updates reportedly included five new playable heroes, a seasonal reset, and smaller adjustments across much of the game. Its recent seasons also featured collaborations with Hello Kitty, Persona, and K-pop group Le Sserafim.
Lord of Hatred has given Diablo 4 its own major source of momentum. The expansion adds the Paladin and Warlock, along with new systems, returning mechanics, and wide-ranging class changes. A closer look at those additions is available in our Lord of Hatred changes breakdown.
Microsoft’s gaming business has reportedly cut 1,600 jobs across its studios and plans to eliminate another 1,600 roles within the following year, making Blizzard’s reported growth an especially strong result inside the wider division.
Xbox reportedly aimed to return to growth by FY27 after revenue fell by $1.7 billion the previous year. The wider restructuring also reportedly affected studios such as Double Fine and ZeniMax.
The email’s authenticity and the financial figures remain unconfirmed, so the claims should be treated as leaked internal performance information rather than an official public earnings statement.
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