Microsoft Windows OEM revenue drops 27% as Windows 10 holdouts stay put

Microsoft's Windows OEM revenue fell 27% year over year in the July–September 2026 quarter, driven by the fading Windows 10 end-of-support upgrade cycle, OEM inventory drawdowns and weaker PC demand. Windows 10 still runs on 27.82% of PCs online, per Statcounter, and Microsoft guides to a mid-thirties decline for the next quarter.

• Windows OEM and Devices revenue fell 22% to $3.55 billion from $4.55 billion
• Windows 10 holds 27.82% share versus 71.44% for Windows 11, Statcounter says
• Microsoft expects Windows revenue to decline in the mid-thirties next quarter
• Search advertising revenue rose 12% on LinkedIn, Edge and Bing