Microsoft Overhauls Financial Reporting Structure to Boost Transparency
Microsoft has announced a significant change to its financial reporting structure, starting in its fiscal year 2027. The company will now report on two segments instead of three, with Azure revenue disclosure being a key part of this new structure.
The old structure, which dated back to 2015, reported on Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The new setup combines some of these segments, including Microsoft's enterprise applications and agents, such as Microsoft 365 and GitHub, into a single segment called Agents and Infra.
Azure will be part of this Agents and Infra segment, with the company providing quarterly revenue transparency across many of its specific business units, including Azure and Microsoft 365 Cloud. This is a significant change from the previous structure, where only growth in percentage terms was disclosed.
Microsoft's total revenue, cost of revenue, and operating expense guidance are unchanged under the new structure, but the company will provide quarterly revenue figures for Azure and several other key businesses, giving investors a clearer view of the dollars flowing through its cloud infrastructure.