Microsoft to Disclose Azure Quarterly Sales and Adjust Financial Reporting Structure

Microsoft (MSFT.US) has announced it will begin disclosing the quarterly sales of its Azure cloud business, a move that changes its longstanding practice of only publishing Azure’s revenue growth rate without revealing exact revenue figures. Microsoft stated that considering Azure's size and significance, now is the right time to increase transparency. This adjustment marks Microsoft’s first major overhaul of its primary financial reporting structure since 2015. The company will merge its former Intelligent Cloud business and Productivity and Business Processes segment into the new “Agents & Infra” division; the More Personal Computing segment will be reclassified as the “Devices & Consumer” division. Microsoft noted that artificial intelligence is changing how the company builds products and operates, blurring the boundaries between products and reshaping its business model. Previously, the company disclosed that Azure recorded sales of over 100 billion dollars in the fiscal year ending June, up from 75 billion dollars in the prior fiscal year, accounting for roughly 30% of Microsoft’s total revenue. The new reporting structure will be officially implemented when Microsoft releases its financial report for the first quarter of fiscal year 2027.