Microsoft to reveal Azure quarterly earnings under new two-segment reporting structure
Microsoft is overhauling its investor reporting by consolidating operations into two segments: Agents and Infra, and Devices and Consumer. For the first time, the company will disclose Azure's quarterly revenue, a move it says reflects the growing influence of artificial intelligence on its business. The new structure also groups Xbox, Windows, and search advertising under the Devices and Consumer umbrella.
The restructuring replaces Microsoft's long-standing three-segment reporting model, which separated productivity software, cloud services, and personal computing. Under the new framework, the Agents and Infra segment captures Azure alongside Microsoft 365 Cloud, server products, industry solutions, and enterprise support services, while Devices and Consumer consolidates Xbox, Windows OEM, search advertising, and LinkedIn ad revenue.
Azure's quarterly figures will now exclude GitHub cloud, Security Copilot, and Healthcare and Life Sciences cloud revenues, narrowing the definition to consumption-based platform and infrastructure services. The revised reporting takes effect with first-quarter fiscal 2027 earnings in late October, giving investors their first direct look at Azure's standalone quarterly performance.
This reporting change could give investors and analysts a clearer picture of Azure's true profitability, potentially influencing market valuations and investment decisions across the tech sector. Competitors and cloud customers may also gain useful benchmarks for comparing infrastructure pricing and growth. For everyday consumers, the consolidated Devices and Consumer segment could obscure how individual products like Xbox or Windows perform, though the broader shift signals how deeply AI now shapes corporate strategy and financial transparency.