Blizzard Posts Third-Highest Revenue in FY26, Plans WoW Expansion at BlizzCon 2026

Blizzard Entertainment has delivered its strongest performance in years within Microsoft's Xbox ecosystem. Blizzard President Johanna Faries sent an internal memo to staff rallying support for BlizzCon 2026, and disclosed that the studio has achieved revenue growth in two consecutive fiscal years. FY25 and FY26 represent the first back-to-back growth since fiscal 2017, with FY26 ranking as the third-highest revenue year in Blizzard's history. Faries said BlizzCon 2026 will showcase the results of the team's recent efforts and serve as a significant starting point for Blizzard's next chapter.

The growth was led primarily by the major Diablo 4 expansion and Overwatch. Diablo 4: Vessel of Hatred and Overwatch delivered strong performances, with Overwatch posting its strongest quarter since 2022. Faries noted these successes will enable Blizzard to invest further in game development, talent cultivation, and future projects.

Over the past decade, Blizzard experienced a down cycle, with franchises including World of Warcraft and Overwatch facing player attrition and insufficient content updates. In recent years, the situation has shifted. Overwatch 2 now places greater emphasis on player feedback and has sustained a pipeline of new content, World of Warcraft's update cadence has become markedly more stable, and Diablo 4 has regained player confidence through reworked endgame systems and major expansions.

Following Microsoft's acquisition of Activision Blizzard, the parent company adopted a "limited integration" approach for Blizzard, allowing the studio to preserve its independence while gaining resource support. Xbox's overall business, however, continues to face pressure. Microsoft's financial reports show Xbox revenue declined approximately 11% in fiscal 2026, partly attributable to weak performance from major franchises such as Call of Duty and Candy Crush. Microsoft has also carried out sustained layoffs over the past year, affecting several studios under Xbox Game Studios, including State of Decay developer Undead Labs, Hellblade developer Ninja Theory, and the Doom development team at id Software.

Looking ahead, Blizzard plans to formally reveal more details on the next World of Warcraft expansion, The Last Titan, at BlizzCon in September 2026. The company is also developing multiple mobile spinoff titles and exploring transmedia projects similar to Cyberpunk: Edgerunners and the Fallout television series. In addition, a StarCraft third-person shooter led by Far Cry franchise director Dan Hay has entered development, and the next core Diablo title is also in development.