Microsoft has acknowledged that the recent surge in PC sales was largely fueled by the impending end of support for Windows 10, rather than demand for AI-powered computers.
The admission came during the company's fourth-quarter fiscal 2026 earnings report, where total corporate revenue reached $90.0 billion.
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In the report, Microsoft revealed a 7% drop in Windows OEM and Devices revenue, along with a 5% decline in Windows OEM revenue.
Executives attributed the hardware slowdown to lower market demand and difficult year-over-year comparisons.
"Windows OEM and Devices revenue decreased 7%, and Windows OEM decreased 5% driven by lower PC market demand and a high prior-year comparable that benefited from Windows 10 end of support," Microsoft noted during the earnings call, as first spotted by Windows Latest.
"Results were ahead of expectations as OEM and channel partners continued to build inventory given increasing component prices."
The company has since updated its support documentation to show that Windows 10 support is extended through October 2027.
Microsoft is also directly informing users via email that they can secure an extra year of extended security updates instead of immediately upgrading to Windows 11.
Hardware Partners See Opportunity
Meanwhile, hardware partner HP continues to attribute its market progress to both operating system transitions and emerging AI technology.
Karen L.
Parkhill, HP's Executive Vice President and Chief Financial Officer, addressed investors in late May 2026 regarding the remaining user base on older software.
