Microsoft Will Disclose Azure’s Quarterly Revenue for the First Time After Years of Investor Pressure

Microsoft is overhauling how it reports its finances to investors, collapsing three business segments into two and disclosing quarterly revenue for its Azure cloud business for the first time ever. The company confirmed the changes this week in a regulatory filing, according to The Verge, and the new structure takes effect with Microsoft’s fiscal 2027 first-quarter earnings report in late October.

The move ends years of investor frustration that Microsoft, despite running one of the world’s three largest cloud platforms, disclosed Azure’s growth only in year-over-year percentage terms each quarter, rather than the hard quarterly dollar figures that Amazon and Google already report for their own cloud businesses.

Two Segments Instead of Three

Microsoft has used the same three-segment reporting structure since 2015: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. Starting with fiscal 2027, those three collapse into two: Agents and Infra, and Devices and Consumer.

Agents and Infra absorbs most of what used to be Intelligent Cloud and Productivity and Business Processes. It covers Azure, Microsoft 365 Cloud, Microsoft 365 commercial and consumer software, server products, industry solutions, and what Microsoft now calls “frontier and support services,” its renamed enterprise and partner services business. Devices and Consumer is essentially the old More Personal Computing segment relabeled: search and advertising revenue from Bing and LinkedIn, the Xbox division, and Windows OEM and device sales.

CEO Satya Nadella framed the change as a response to how thoroughly AI has reshaped the company’s own structure. “There’s no question AI represents a profound shift in both technology and business,” Nadella said, according to The Verge. “It is changing what we build and how we operate, and it is blurring the boundaries between our products and reshaping our business models.”

Azure’s First Real Number: $29.4 Billion

The headline change for investors is Azure itself. Under the new structure, Microsoft disclosed that Azure generated $29,417 million (about $29.4 billion) in the quarter that ended June 30, 2026, and $101,938 million (about $101.9 billion) for the full 2026 fiscal year, according to Microsoft’s SEC filing. Microsoft is guiding to 44 percent to 45 percent constant-currency Azure revenue growth for its first quarter of fiscal 2027.

“Under this reporting structure, Azure becomes more purely our consumption-based platform and infrastructure business,” Nadella said. “Within each of these segments, you will have full transparency of quarterly revenue across each of our key businesses, including Azure, M365 Cloud, industry solutions, and ads.”

A Narrower Definition of Azure

The newly disclosed Azure figure is also a narrower one than the number analysts have been estimating for years. Microsoft’s filing states that Microsoft 365 commercial cloud will now include GitHub cloud and other developer cloud services, as well as Security Copilot, both of which were previously reported inside Azure. Healthcare and Life Sciences cloud revenue moves to the new industry solutions cloud metric instead. That makes the new Azure number a cleaner read on Microsoft’s core infrastructure-as-a-service and platform-as-a-service business, but it also means the figure is not directly comparable to any Azure estimate analysts previously built from Microsoft’s old, bundled disclosures.

Why It Matters

Bloomberg has reported that the change follows years of criticism from Wall Street over the company’s lack of transparency around what Bloomberg called its most important growth engine, coverage that technology writer Paul Thurrott flagged, even as he noted he was one of the few voices consistently raising the issue himself. Microsoft has occasionally cited rounded annual figures or growth percentages in recent years, but it had never broken out a consistent quarterly dollar number the way Amazon reports Amazon Web Services or Google reports Google Cloud.

The new figure puts Azure in rough context against its two biggest rivals for the same April-to-June quarter: Amazon Web Services reported $42.2 billion in revenue and Google Cloud reported $24.8 billion, each disclosed under its own accounting definitions. Azure’s newly narrowed scope, with GitHub, Security Copilot, and healthcare cloud revenue now reported elsewhere, brings the comparison closer to apples-to-apples than it has ever been, though the three companies still draw their segment boundaries differently enough that the figures are best read as directional rather than exact, a point Blockonomi’s analysis of the disclosure also flagged.

Microsoft has restated its fiscal 2025 and 2026 financial results under the new segment structure, giving investors a two-year baseline to measure Azure’s growth against once it reports its first quarter under the new system in late October. Microsoft did not disclose Azure’s profitability alongside the new revenue figures, and Thurrott noted the company is still not being transparent about what it actually spends on AI infrastructure.