Microsoft Dives Deeper into Cloud Earnings with New Reporting Structure

Microsoft has revamped its financial reporting structure to better reflect the company's transformation in the age of AI. The software giant will now report its businesses into two segments, Agents and Infra, and Devices and Consumer, replacing its previous three-segment approach.

The changes aim to provide greater transparency into Microsoft's operations, including the performance of its Azure cloud business. Azure revenue will be disclosed on a quarterly basis for the first time, giving investors a more detailed look at the company's growth in this key area.

Microsoft CEO Satya Nadella explained that AI is driving profound changes in both technology and business, blurring boundaries between products and reshaping business models. The new reporting structure will allow investors to see how Microsoft's various businesses, including Azure, Microsoft 365 Cloud, and industry solutions, are performing on a quarterly basis.