Microsoft to disclose Azure revenue under reporting overhaul

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Microsoft Azure revenue reporting

Highlights

Microsoft will begin disclosing quarterly Azure revenue, moving to two new reporting segments—Agents and Infra, and Devices and Consumer—while providing two years of recast financial results.
Azure’s figures will exclude GitHub cloud services, developer cloud, Security Copilot, and healthcare and life sciences products, making it a more focused infrastructure business amid booming AI demand.
Microsoft 365 Copilot paid seats grew to over 30 million by July, and the new disclosure aligns Microsoft more closely with Amazon and Alphabet cloud reporting, though cost and margin details will no longer be given.

Azure reporting changes and segment overhaul

As reported by CNBC, Microsoft announced in a presentation on Wednesday that it will start disclosing quarterly revenue for Azure, giving investors a clearer measure of the cloud business that competes with Amazon Web Services and Google’s cloud platform.

The shift comes as Microsoft replaces a reporting structure that has been in place since 2015. The company says it is moving to two segments, Agents and Infra, and Devices and Consumer, and is also providing two years of recast financial results and adjusted guidance.

Microsoft has until now disclosed Azure mainly through year-over-year growth rates, and only started providing annual sales figures dating back to last year. Another major change is that Azure will no longer include GitHub cloud services, developer cloud services, the Security Copilot assistant, and healthcare and life sciences cloud products.

In the presentation, Chief Executive Satya Nadella says AI is reshaping both Microsoft’s products and business models. He also says the revised structure makes Azure a more purely consumption-based platform and infrastructure business.

AI demand sharpens investor focus on cloud growth

Azure remains a key beneficiary of the AI boom as customers increasingly rely on large cloud infrastructure providers to access models used to build agents and other tools. Stifel analysts estimated in July that about half of Azure’s revenue growth in Microsoft’s 2026 fiscal year came from OpenAI, while Anthropic is also becoming more dependent on Microsoft’s cloud.

The new Agents and Infra segment will include Azure, Microsoft 365 cloud products, productivity and server licensing, industry solutions, and frontier and support services. Devices and Consumer will include search and advertising, Xbox, device sales, and Windows license revenue from device makers.

The new structure also gives Microsoft more room to highlight growth in AI assistants such as Microsoft 365 Copilot for commercial users and the GitHub Copilot coding agent. Microsoft said in July that it has more than 30 million paid seats for Microsoft 365 Copilot, up from more than 20 million in April.

Microsoft’s move brings its disclosure practices closer to major rivals. Amazon started reporting AWS revenue in 2015, while Alphabet began reporting combined revenue from Google Cloud Platform and Workspace subscriptions in 2020, although Microsoft will stop showing costs and operating margins for its three former segments.

Our earlier article covered Google’s agreement to buy up to 996 MW of geothermal power from Fervo’s Cape Station project in Utah to help meet rising electricity needs tied to AI data centers. We noted the deal starts with 396 MW expected in 2028, with options that could scale close to 1 GW by 2030, underscoring how hyperscalers are securing long-term energy supplies as AI infrastructure demand accelerates.

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