Microsoft Breaks Out Azure Revenue in Overhaul of Financial Reporting

Microsoft is making significant changes to its financial reporting structure by breaking out Azure revenue for the first time. The move puts the cloud unit on a more direct comparison footing with Amazon Web Services and Google Cloud, which already report standalone revenue.

The new Agents and Infra segment will house Azure, Microsoft 365 cloud products, productivity and server licensing, industry solutions, and what the company describes as frontier and support services. Devices and Consumer will encompass search and advertising, the Xbox gaming business, device sales, and Windows operating system licenses sold to hardware makers.

The decision to isolate Azure's consumption-based revenue suggests Microsoft management is confident in the story the numbers will tell. The first results under the new structure are expected when Microsoft reports its next quarterly earnings.