Microsoft is set to give investors a clearer view of its Azure cloud business, announcing it will disclose quarterly Azure revenue for the first time as part of a broader restructuring of its financial reporting. The change, revealed in a Wednesday presentation, is part of the company’s move to consolidate its operating segments from three to two — a structure that had been in place since 2015.
Azure has been a key beneficiary of the artificial intelligence boom, with customers flocking to major cloud platforms to access the AI models required to build new tools and agents. According to a July estimate from Stifel analysts, OpenAI accounted for roughly half of Azure’s revenue growth in the 2026 fiscal year, while Anthropic has also become increasingly reliant on Microsoft’s cloud infrastructure.
“There’s no question AI represents a profound shift in both technology and business,” CEO Satya Nadella wrote in the presentation. “It is changing what we build and how we operate, and it is blurring the boundaries between our products and reshaping our business models.”
The new disclosure brings Microsoft in line with its rivals. Amazon has reported AWS revenue since 2015, and Alphabet began breaking out Google Cloud revenue in 2020. Microsoft, until now, had only disclosed Azure’s year-over-year growth rate, with annual sales figures only recently made available.
New reporting segments: Agents and Infra, Devices and Consumer
Moving forward, Microsoft will organize its business into two segments: Agents and Infra, and Devices and Consumer. The first will include Azure, Microsoft 365 cloud products, productivity and server licensing, industry solutions, and frontier and support services. The latter covers search and advertising, Xbox, device sales, and Windows operating system licensing to device makers.
Within Agents and Infra, Microsoft will highlight momentum from its AI assistant offerings, including Microsoft 365 Copilot and GitHub Copilot. The company said in July that paid seats for Microsoft 365 Copilot exceeded 30 million, up from more than 20 million in April.
The new Azure definition excludes GitHub cloud services, developer cloud services, Security Copilot, and healthcare and life sciences cloud products — items that had been bundled into the older “Azure and other cloud services” metric. Nadella noted that under the new structure, “Azure becomes more purely our consumption-based platform and infrastructure business.”
Recast results and guidance
Microsoft will provide two years of recast financial results and adjusted guidance, but will stop disclosing costs and operating margins for the old segments.
With the revised approach, Azure revenue grew 42% to $29.42 billion in the June quarter, compared with 43% growth using the previous metric. That means Azure represented nearly 33% of Microsoft’s total revenue in that period.
Management guided for fiscal first-quarter Azure revenue growth of 44% to 45% at constant currency, slightly lower than the 45% growth it had previously projected for Azure and other cloud services.
For the current quarter, Microsoft is targeting $75.15 billion to $75.75 billion in Agents and Infra revenue and $14.7 billion to $15.2 billion in Devices and Consumer revenue. The company’s overall revenue, cost of revenue, and operating expense outlook remain unchanged.
Source: www.cnbc.com — https://www.cnbc.com/2026/09/02/microsoft-to-disclose-azure-revenue-as-part-of-segment-changes.html
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