Microsoft discloses Azure revenue as part of major financial reporting changes
Microsoft is restructuring its financial reporting into two segments, 'Agents and Infra' and 'Devices and Consumer,' to better reflect its focus on AI. The company will now disclose quarterly revenue for its Azure cloud business, providing greater transparency into its consumption-based infrastructure growth.
Why it matters
This change signals a major shift in how tech giants value and report AI-driven business models to investors, setting a new standard for financial transparency in the sector.
Microsoft is changing how it reports its finances to investors by splitting its businesses into two segments and disclosing quarterly revenue for its Azure cloud business for the first time. The changes are meant to reflect the ongoing impact of AI on Microsoft and how the company now operates.
The software giant has previously reported revenue from three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. This is now simplifying to two: Agents and Infra, and Devices and Consumer.
Devices and Consumer will include search and advertising revenues from LinkedIn and search advertising, as well as revenue from the Xbox division and Windows OEM and devices. Agents and Infra is essentially the rest of Microsoft, including Azure, Microsoft 365 Cloud, Microsoft 365 commercial and consumer, server products, industry solutions, and the enterprise and partner services that Microsoft now calls frontier and support services.
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