Microsoft Changes Financial Reporting Structure, Discloses Azure Revenue Quarterly
Microsoft has announced a major shift in its financial reporting structure to better reflect how AI and evolving business models are reshaping operations. The company is consolidating from three segments—Productivity and Business Processes, Intelligent Cloud, and More Personal Computing—to two new ones: Agents and Infra, and Devices and Consumer. The new Devices and Consumer segment will include revenue from Xbox, Windows OEM and devices, LinkedIn search advertising, and Microsoft's broader consumer offerings. The Agents and Infra segment includes Azure cloud services, Microsoft 365 Cloud (both commercial and consumer), server products, industry solutions, and enterprise support services. For the first time, Microsoft is disclosing quarterly revenue for its Azure business separately from other cloud-related services like GitHub or Security Copilot. These changes will take effect with Microsoft's Q1 fiscal year 2027 earnings report in late October.
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Topics: AI impact on business models Azure revenue disclosure business restructuring Microsoft