Microsoft Overhauls Reporting Structure, Discloses Standalone Azure Revenues

Microsoft is set to release standalone quarterly revenue for its Azure cloud business, providing investors with a clearer view of how it stacks up against Amazon Web Services and Google Cloud.

The move is part of a broader overhaul, as Microsoft cuts its reporting segments from three to two. The new structure will make it easier to track AI-driven cloud demand versus other businesses.

Azure's revenue grew 42% to $29.42 billion in the June quarter, and management is guiding for 44-45% growth in constant currency for fiscal Q1. Microsoft has also given first targets for the new segments: $75.15-$75.75 billion for Agents and Infra, and $14.7-$15.2 billion for Devices and Consumer.

The old reporting setup no longer captured the shift towards AI-driven business, according to CEO Satya Nadella. Microsoft's transparency push should help investors better understand how much of the company's growth comes from Azure and other businesses.