Microsoft (MSFT.O) announced on September 3 that it will begin disclosing quarterly sales of its Azure cloud business starting from fiscal year 2027, a shift from its long-standing practice of only reporting Azure revenue growth rates. The company said the move is aimed at increasing transparency given Azure's scale and importance.
Segment Reorganization and Reporting Changes
This is Microsoft's first major overhaul of its primary financial reporting structure since 2015. The company will merge its Intelligent Cloud and Productivity & Business Processes segments into a new 'Agents & Infrastructure' division. The More Personal Computing segment will be renamed 'Devices & Consumer'.
Azure Revenue and AI Impact
Microsoft previously disclosed that Azure sales exceeded $100 billion in the fiscal year ending June, up from $75 billion in the prior year, representing about 30% of total revenue. The company noted that artificial intelligence is transforming how it builds products and operates, blurring product boundaries and reshaping business models. The new reporting structure will take effect when Microsoft reports its first-quarter results for fiscal year 2027.