Blizzard ended Microsoft’s 2026 fiscal year as the top-performing studio within Xbox’s studios division, marking another step in the publisher’s resurgence under Microsoft. FY26 was also Blizzard’s third-highest fiscal year for top-line revenue in the company’s history, driven in part by Diablo IV and a renewed Overwatch.
Blizzard president Johanna Faries shared the results in an internal message to employees ahead of BlizzCon 2026. The figures indicate that the company exceeded Microsoft’s internal expectations during the fiscal year.
The significance extends beyond Blizzard’s overall revenue. FY25 and FY26 established a sustained period of growth for a company that spent much of the previous decade navigating major changes to its games, leadership and business.
Diablo IV was one of the central contributors to the FY26 performance. Blizzard released Lord of Hatred, the game’s second major expansion, on April 28, extending the campaign into the ancient region of Skovos and continuing the conflict with Mephisto.
Lord of Hatred also expanded Diablo IV’s playable roster with two classes. The Paladin became available early to players who pre-purchased the expansion, while the Warlock arrived alongside the full release in April.
Overwatch was another major contributor. Blizzard substantially repositioned the game in 2026, dropping the «2» from its name and returning to Overwatch as the title for its continuously evolving live-service platform.
The changes have coincided with improved performance. According to Faries, Overwatch delivered its strongest quarter since 2022, the year Overwatch 2 originally launched. That represents a notable turnaround for a title that has undergone several strategic changes since release, including a major rethink of its original PvE plans.
Blizzard’s results also underline the value of its broader portfolio of established franchises. World of Warcraft remains another central part of the publisher’s business, while the company continues to build its strategy around long-running games supported by regular expansions, seasons and updates.
The financial momentum comes less than three years after Microsoft completed its $68.7 billion acquisition of Activision Blizzard in October 2023. Blizzard has since operated within the Xbox organization under Faries, who became president of the company in early 2024.
Its FY26 performance stands out against a more difficult period for Microsoft’s wider gaming business. Xbox has undergone multiple rounds of restructuring and layoffs while reassessing parts of its development portfolio, making reliable performance from established franchises increasingly important to Microsoft’s gaming strategy.
The next major opportunity to see where Blizzard intends to go from here will arrive at BlizzCon 2026. The event is scheduled for September 12-13 and is expected to provide a broader look at the company’s plans across its major franchises.
Faries has indicated that the latest results should allow Blizzard to continue investing in its games, development teams and future initiatives. After recording one of the strongest financial years in its history, the next challenge will be maintaining that momentum beyond the current Diablo IV and Overwatch cycles.
