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Satya Nadella oversees Microsoft's transition to a two-segment reporting structure and first-time quarterly Azure revenue disclosure

Microsoft will begin disclosing standalone quarterly revenue for its Azure cloud business for the first time, providing a clearer picture of its competition with Amazon Web Services and Google Cloud. The administration announced that the company is also simplifying its reporting structure from three segments to two: Agents and Infra, and Devices and Consumer. Satya Nadella stated that artificial intelligence is blurring the boundaries between products and reshaping business models. Under the new structure, Azure will represent a more purely consumption-based platform and infrastructure business, excluding GitHub cloud and developer cloud services. Azure generated $29.4 billion in revenue during the most recent quarter, and $101.9 billion during the fiscal year ended June 30. The company is targeting $75.15 billion to $75.75 billion in revenue for the Agents and Infra segment. This reporting shift reflects the increasing integration of AI across cloud infrastructure, software, and applications. While Azure remains a significant part of the company's growth, the new structure allows Microsoft to showcase the momentum of AI assistants like Microsoft 365 Copilot and GitHub Copilot.

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