Microsoft rolls out Windows 11 preview update as Windows OEM revenue falls sharply
Microsoft began rolling out preview update KB5127936 for Windows 11, adding a customizable right‑click menu and a new Cloud Rebuild recovery option that reinstalls the OS from the cloud. The rollout coincides with the company’s quarterly earnings release showing Windows OEM revenue down 27% (28% in constant currency) and the broader Windows and devices segment down 22%, while Azure revenue rose 48% and overall quarterly revenue reached $92.3 billion. CFO Amy Hood said the decline reflects weaker PC demand and inventory drawdowns, and the company expects the trend to continue through the fiscal year.
Why it matters
The steep drop in Windows OEM revenue signals continued pressure on Microsoft’s traditional PC licensing business, potentially affecting future cash flow from that segment. Meanwhile, strong Azure growth and cloud revenue up 30% help offset the decline, indicating a shift toward cloud services as the primary revenue driver.
Key facts
- 1Microsoft started rolling out preview update KB5127936 for Windows 11, which lets users customize the right‑click menu. arstechnica.com
- 2The update also introduces Cloud Rebuild, a feature that reinstalls Windows 11 directly from the cloud. arstechnica.com
- 3Windows OEM revenue fell 27% and 28% in constant currency in the quarter. arstechnica.com
- 4The broader Windows OEM and devices category declined 22% in the quarter. arstechnica.com
- 5Azure revenue grew 48% year over year. arstechnica.com
- 6Total quarterly revenue was $92.3 billion. arstechnica.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.