Microsoft Azure Hits $100 Billion Revenue Milestone as Company Reorganizes Reporting Structure
Microsoft shares closed 1.15% lower at $493.95 on Tuesday, but that's not what investors should focus on.
The more significant development is the new regulatory filing that reveals quarterly dollar revenue for Azure and shows how much of Microsoft's profit will be generated by its AI-centered reporting segment.
Azure is now a massive business, with $101.9 billion in revenue, accounting for 30.7% of Microsoft's total revenue of $331.8 billion.
The company's new reporting structure divides its businesses into two segments: Agents and Infra, which generated $268.1 billion in revenue and $136.3 billion in operating income with a 50.9% operating margin; and Devices and Consumer, which produced $63.7 billion of revenue and $18.8 billion of operating income with a 29.6% margin.
The new structure makes it clear that the enterprise cloud, productivity, and infrastructure stack fund the consumer portfolio.