Microsoft Shakes Up Reporting Structure to Reflect AI Dominance

Microsoft is reorganizing its financial reporting structure from three segments to two, reflecting the increasing importance of AI in its business. The change will take effect starting September 2026 and marks the company's first major reorganization since 2015.

The new structure consists of 'Agents and Infra', which combines cloud and productivity platforms, including Azure core cloud computing services, Microsoft 365, and GitHub. The second segment is 'Devices and Consumer', which includes Search and Advertising, Windows operating system licenses, device sales, and Xbox gaming hardware, software, and services.

Microsoft's chairman and CEO, Satya Nadella, stated that AI represents a 'profound shift' in technology and business, changing what the company builds and how it operates. The reorganization is aimed at demonstrating AI-driven economics to investors and matching the corporate structure to the AI era.