TL;DR: Microsoft will split its reporting into two segments—Agents & Infra and Devices & Consumer—and will disclose Azure quarterly revenue for the first time, reflecting AI‑driven business shifts.
The Details
Microsoft is restructuring its financial reporting, moving from three segments (Productivity and Business Processes, Intelligent Cloud, More Personal Computing) to two: Agents & Infra and Devices & Consumer. The new Devices & Consumer segment will bundle LinkedIn search ads, Xbox, and Windows OEM revenues, while Agents & Infra will contain Azure, Microsoft 365 Cloud, server products, industry solutions, and frontier/support services. Crucially, Azure revenue will now be reported quarterly, stripped of GitHub cloud, Security Copilot, and Healthcare/Life Sciences cloud revenues, offering clearer insight into the consumption‑based platform. The change is positioned as a response to AI’s impact on product integration and business models, aiming to give investors greater transparency into key growth drivers.
Watch For
- Analyst and market reaction once the first quarterly Azure numbers are released.
- Guidance on AI‑related spend and its contribution to the Agents & Infra segment.
- Potential re‑rating of Microsoft by equity research firms as segment granularity improves.