Microsoft's cloud surges to $81 billion as gaming dives—Windows 10's death march forces PC upgrades in RAM shortage hell

Microsoft has reported strong financial results for the second quarter of its 2026 fiscal year, with revenue of $81.3 billion and a net income of $30.9 billion. This represents a 17 percent increase in revenue and a 23 percent increase in net income. The company's cloud earnings were a significant contributor to its success, while its gaming segment experienced a decline. The holiday quarter saw unexpected growth in PC shipments, despite an ongoing RAM shortage, partly due to Microsoft's end of support for Windows 10. PC manufacturers have also been stockpiling inventory to mitigate potential tariffs and the global memory shortage. Microsoft's Windows OEM and devices revenue saw a modest increase of 1 percent. The company's strong performance is a testament to its successful transition to cloud-based services and its ability to navigate challenges in the tech industry. The results underscore Microsoft's position as a leader in the technology sector.