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Microsoft (MSFT) Q2 2023 Windows OEM revenue plummeted 39% during the quarter

Microsoft's OEM revenue year-over-year took one of the worst drops it's seen yet.

TJ Denzer

January 24, 2023 1:55 PM

Image via Microsoft

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As tech companies report on the end of their fiscal quarters, Microsoft is the latest giant on the block in reporting this week, and it had some glaring stats, particularly in its Windows OEM revenue. The company has seen some slowing in revenue growth year-over-year in this category. However, in Q2 2023, Windows OEM revenue growth year-over-year fell off a cliff. The company saw a 39 percent revenue decay, making easily one of the largest drops this stat has ever seen.

This stat was reported in the presentation alongside Microsoft’s Q2 2023 earnings results, which were posted on the company’s investor relations website on January 24, 2023. It was here that Microsoft reported Windows OEM saw its 39 percent drop year-over-year. For perspective, the presentation also shows previous quarters going back to Q2 2022. In the last five quarters, Windows OEM actually grew by 25 percent. In Q4 2022, the company saw its first decay in Windows OEM revenue growth, but it was only by 2 percent. Even Q1 2023 only reached a 15 percent drop. The raise to 39 percent in Q2 2023 was a substantial drop to say the least.

Despite the abysmal decay in Windows OEM in Q2 2023, the company saw some level of success. Its Cloud services revenue has continued to be a solid performer for the company and this recent quarter was no exception. Cloud revenue was up 22 percent for Microsoft in the quarter. Moreover, its substantial investment in to AI technology such as ChatGPT and OpenAI have a lot of eyes on the company in the years ahead.

Regardless, it’s increasingly looking like these sectors are going to have to perform where Windows OEM hasn’t as of late. As we continue to report on company quarters and earnings results, stay tuned for Microsoft’s Q2 2023 earnings call today. We’ll have standout details from the call as they become available.

TJ Denzer

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.