Microsoft is reshaping the way it reports its business, putting AI agents and cloud infrastructure at the center of its financial structure while giving investors a clearer view of Azure’s growing contribution.
Beginning with fiscal 2027, Microsoft will move from three reporting segments to two: Agents and Infra and Devices and Consumer. The company will also begin providing quarterly revenue figures for Azure, allowing investors to directly compare its cloud business with Amazon Web Services and Google Cloud.
Azure gets its own revenue spotlight
Microsoft previously disclosed Azure’s growth rate but did not provide standalone quarterly sales. Under the new reporting structure, the company will provide greater transparency into Azure alongside other major businesses.
Azure generated $29.4 billion in the latest completed quarter and $101.9 billion for the fiscal year ended June 30, according to the newly disclosed figures. For comparison, Amazon Web Services reported quarterly sales of $42.2 billion, while Google Cloud generated $24.8 billion in the comparable period.
The change gives investors a clearer picture of the competitive landscape as cloud providers spend heavily to build infrastructure capable of supporting increasingly demanding AI workloads.
Microsoft puts agents and infrastructure together
The new Agents and Infra segment will combine Microsoft’s cloud infrastructure with products and services built around AI and enterprise software.
It includes Azure, Microsoft 365, GitHub, AI software and other business offerings. Microsoft said the structure better reflects how its products are increasingly connected through AI agents and cloud infrastructure.
The company’s broader AI strategy has already moved beyond chatbots. Microsoft says its Foundry platform now has 100,000 customers, while Agent 365 has nearly 40 million registered agents across tens of thousands of companies. Microsoft 365 Copilot also has more than 30 million paid seats.
A clearer picture of Microsoft’s AI business
The restructuring reflects Microsoft’s view that AI is changing not only its products but also how customers interact with software.
Rather than treating AI as a standalone feature, Microsoft is increasingly connecting agents, applications, cloud computing and infrastructure into a single ecosystem. Its new reporting structure is designed to reflect that shift.
At the same time, separating Azure revenue should give investors a better way to assess Microsoft’s position against AWS and Google Cloud as the three companies compete for a rapidly expanding AI infrastructure market.
For Microsoft, the move is therefore more than an accounting change. It provides a clearer financial picture of the business that has become central to the company’s AI strategy.
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