Microsoft is overhauling its financial reporting to show quarterly Azure revenue separately, as the technology group reorganises its business around the growing influence of artificial intelligence.
The company will replace its existing three reporting divisions with two new segments: Agents and Infra, and Devices and Consumer. The changes will be introduced with Microsoft’s first-quarter fiscal 2027 results, due in late October.
Microsoft has previously reported results through Productivity and Business Processes, Intelligent Cloud and More Personal Computing. The new structure is intended to reflect how the company’s products and operations increasingly overlap.
Agents and Infra will contain Azure, Microsoft 365 Cloud, Microsoft 365 for commercial and consumer customers, server products, industry solutions, and enterprise and partner services. Microsoft describes the latter as its frontier and support services.
Devices and Consumer will include Windows original equipment manufacturer and devices revenue, Xbox, as well as LinkedIn search and advertising and other search advertising income.
The most significant change for investors will be the publication of Azure revenue on a quarterly basis. Microsoft has previously disclosed Azure’s year-on-year growth and reported revenue for the business for the first time last year, but the new figures will offer a clearer view of its performance each quarter.
Azure’s revised figures will focus more narrowly on its consumption-based cloud platform and infrastructure operations. They will exclude GitHub cloud and other developer cloud services, along with Security Copilot and Healthcare and Life Sciences cloud revenue.
Satya Nadella, Microsoft’s chief executive, said: “There’s no question AI represents a profound shift in both technology and business. It is changing what we build and how we operate, and it is blurring the boundaries between our products and reshaping our business models.”
He added that the new structure would provide “full transparency of quarterly revenue across each of our key businesses, including Azure, M365 Cloud, industry solutions, and ads”.
