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. FY26 reportedly ran from July 1, 2025, through June 30, 2026. 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 FY25 and FY26 as Blizzard’s first back-to-back growth years since FY17.
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. Faries reportedly credited both games with driving Blizzard’s performance, while Overwatch reportedly delivered its strongest quarter since 2022.
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 reportedly released in April 2026 and 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.
During Q4 FY26, which covered April 1 through June 30, 2026, Xbox content and services revenue reportedly fell 10% year over year, while hardware revenue declined 13%.
Xbox CEO Asha Sharma reportedly said the company expected to return to growth by the end of FY27, which concludes on June 30, 2027, 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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