Microsoft to Report Azure Revenue Separately as It Reshapes Segments
Azure revenue reporting gives investors clearer visibility into Microsoft cloud growth. See how the new format compares Azure with AWS and Google Cloud.
Microsoft will begin reporting quarterly revenue for Azure in dollar terms, giving investors a clearer view of the cloud unit that competes with Amazon Web Services and Google Cloud. The change was announced Wednesday as part of a broader update to the company’s financial reporting structure.
The company is reducing its operating segments from three to two. Under the new setup, Azure will be grouped into a larger “Agents and Infra” segment, which also includes Microsoft 365 cloud products, productivity and server licensing, industry solutions, and support services.
Microsoft said the revised reporting will make Azure look more directly like its consumptionbased infrastructure business. The company also said Azure no longer will include some products tied to GitHub, Security Copilot, and certain healthcare and life sciences cloud offerings. In the June quarter, Azure revenue rose 42% to $29.42 billion, and Microsoft said it expects Azure growth of 44% to 45% in constant currency in the fiscal first quarter.