Microsoft Shifts to Two-Segment Reporting Structure for AI-Driven Operations

Microsoft is updating its financial reporting structure for FY27, breaking down its operations into two segments: Agents and Infra, and Devices and Consumer. This change aims to better reflect the company's AI-driven business.

The revised reporting will also involve restating FY26 results, with Microsoft announcing that it will report $331,839 million in revenue for that fiscal year. Specifically, the Agents and Infra segment generated $268,127 million in revenue during FY26.

In addition to these changes, Microsoft is updating its investor metrics to reflect moved services. This includes changing definitions for Azure, Microsoft 365 commercial, Industry solutions, and Search & advertising.

The company has also provided an adjusted outlook for FY27 Q1, projecting $89.85-90.95 billion in total revenue. Within this range, Agents and Infra is expected to generate $75.15-75.75 billion, while Devices and Consumer will contribute $14.7-15.2 billion.