Blizzard ended fiscal year 2026 as the top performing studio within Xbox Studios. According to internal company information, its annual revenue was the third highest in Blizzard's history, while the studio achieved back to back yearly growth for the first time since 2017.
Blizzard president Johanna Faries shared the news in an internal email to employees, later published by Jez Corden. She credited the studio's strong performance primarily to the continued development of Overwatch and the release of the major Lord of Hatred expansion for Diablo 4.
«In FY26 Blizzard ended the year as the top-performing studio in Xbox's studios division," Faries wrote. She also noted that the past financial year represented "our third highest fiscal for top line revenue in Blizzard's history».
The Blizzard president further confirmed that FY25 and FY26 were the company's first back-to-back years of growth since FY17. This marks the end of a period of almost a decade without consecutive years of growth.
Two games were particularly important to Blizzard's results: Diablo 4 and Overwatch. The Lord of Hatred expansion for Diablo 4 launched in April 2026, adding a new story, region, the Paladin and Warlock classes, and additional content to the action RPG.
Overwatch has also undergone major changes in recent years. Blizzard brought loot boxes back and introduced the perk system in 2025, while 2026 saw the removal of the «2» from the game's name, alongside plans for 10 new heroes during the year and numerous quality of life improvements. According to Faries, those efforts paid off, with Overwatch recently delivering «its strongest quarter since 2022».
Faries believes Blizzard's recent successes will help «shape Blizzard's future». According to Windows Central, the company is also developing mobile spin offs and transmedia projects based on some of its franchises, while work on the next mainline Diablo game continues.
Nothing has been officially announced about these projects yet. However, BlizzCon 2026 could provide more details when the event takes place on September 12 and 13.
«It's my hope that the event can shine a light on the work underway at Blizzard», «and that it can serve as a powerful springboard into a new era of momentum and excitement behind our mission to bring joy and belonging for communities worldwide», — Faries wrote.
Despite Blizzard's strong results, Xbox as a whole is facing a difficult period. Following the company's plans to reset the Xbox brand, Microsoft has announced thousands of job cuts and changes affecting several game studios. The company is now attempting to refocus on its strongest franchises, including Call of Duty, Fallout, The Elder Scrolls, and Halo.
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