Microsoft is changing its financial reporting structure to reflect the impact of artificial intelligence on the way the company operates. The company will consolidate the Productivity and Business Processes, Intelligent Cloud and More Personal Computing segments it previously used under two new headings: Agents and Infra and Devices and Consumer.
Devices and Consumer will cover Xbox, Windows OEM and device revenue, as well as LinkedIn search and advertising revenue. Agents and Infra will include Azure, Microsoft 365 Cloud, Microsoft 365 commercial and consumer products, server products, industry solutions, and enterprise and partner services referred to as frontier and support services.
Microsoft will also disclose Azure revenue on a quarterly basis for the first time. Under the new structure, Azure revenue will not include GitHub cloud, other developer cloud services, Security Copilot or Healthcare and Life Sciences cloud revenue. CEO Satya Nadella said the change would more directly reflect Azure’s consumption-based platform and infrastructure business. The changes will begin to be used in Microsoft’s fiscal 2027 first-quarter results, in late October.
Why it matters
The new structure means Microsoft will present its business lines within a framework that makes the weight of artificial intelligence and cloud services within the company more visible, rather than organizing them solely by product names. The categories replacing the previous segments will regroup various activities, from Xbox and Windows to Azure and enterprise services, changing how financial results are interpreted across periods and business areas. Disclosing Azure revenue separately will make it possible to track the position of platform and infrastructure operations within the total more directly; however, the exclusion of GitHub cloud, Security Copilot and several other services from this item indicates that the scope of the Azure figure will be limited. The new reporting will therefore require the metrics used to assess Microsoft’s growth to be reinterpreted.
Background
Microsoft is no newcomer to the FikirPilot archive: over the past 90 days, we have published 6 stories mentioning the name, the latest dated September 5, 2026.