Microsoft has announced that it will begin disclosing quarterly revenue for its Azure cloud business, marking a significant shift in its reporting structure. This decision, announced during a presentation, aims to provide investors with a clearer understanding of its competitive positioning against Amazon Web Services and Google Cloud.
The change comes as Microsoft consolidates its operating segments from three to two, a structure that has existed since 2015. Azure has seen substantial growth, especially due to the increasing demand for AI-related services. Analysts estimate that around half of Azure’s revenue growth for fiscal 2026 is tied to AI partnerships, particularly with companies like OpenAI and Anthropic.
CEO Satya Nadella emphasized the transformative nature of AI in his presentation, stating that it alters how products are developed and business models are structured. Historically, Microsoft has only provided year-over-year growth rates for Azure, but starting now, it will reveal actual sales figures on a quarterly basis.
In addition to revealing revenue, Azure’s reporting will now exclude certain services such as GitHub cloud services and healthcare products. This aims to focus on the core consumption-based platform of the Azure business.
Going forward, Microsoft’s operations will be divided into two segments: Agents and Infra, which will include Azure and Microsoft 365, and Devices and Consumer, covering other products like Xbox and Windows licenses. Azure’s revenue grew 42% to $29.42 billion in the last quarter, suggesting it now accounts for nearly a third of Microsoft’s overall revenue. The company anticipates Azure growth rates between 44% to 45% for the upcoming fiscal quarter.
