Microsoft Ditches Old Structure for AI-Centric Reporting
Microsoft is shaking up its reporting structure to better reflect its focus on AI and cloud technologies. The company will consolidate its three existing segments into two: Agents and Infra, and Devices and Consumer.
The new segment of Agents and Infra will serve as the backbone of Microsoft's operations, with Q1 revenue guidance set between $75.15 billion and $75.75 billion. This includes Azure, Microsoft 365 cloud, GitHub, server licensing, Dynamics, LinkedIn, and other productivity services. The move aims to provide investors with a clearer perspective on the sectors benefiting from enterprise cloud and AI expenditures.
Azure will now report revenue in dollar amounts rather than just percentage growth. Q1 Azure revenue growth is projected to be between 44% and 45% in constant currency, allowing for easier comparison with Amazon's AWS.