Microsoft Tightens Focus on Azure Revenue with New Financial Reporting Structure

Microsoft is overhauling its financial reporting to provide more transparency into its Azure cloud business. The company will now disclose specific quarterly revenue figures for Azure, a significant change from the previous year-over-year growth percentages.

The move comes as part of Microsoft's largest restructuring of financial reporting since 2015, when the company consolidated three operating segments into two: Agents and Infra, and Devices and Consumer. The new structure will more tightly define Azure's reported revenue, excluding GitHub cloud services, developer cloud services, Security Copilot, and healthcare and life sciences cloud products.

Azure generated $29.42 billion in revenue during the quarter ending in June, a 42% increase from the same period a year earlier. The company also surpassed $100 billion in cumulative sales for the full fiscal year 2026.

Microsoft Chief Executive Officer Satya Nadella described AI as forcing a fundamental change in how the company builds products and organizes its business, blurring the boundaries between product lines and reshaping its business models.