Microsoft will, for the first time, publicly disclose quarterly revenue figures for its Azure cloud business, offering greater transparency into its competitive cloud market position against giants like Amazon and Google. This comes as part of a significant organizational overhaul, reducing its operating segments from three to two and redefining Azure’s reporting scope to focus purely on consumption-based platform and infrastructure services. The strategic move aims to provide clearer insights into the company’s AI-driven growth and financial performance.
In a significant move for investors and market analysts, Microsoft (MSFT) has announced it will begin disclosing quarterly revenue figures for its Azure cloud business. This marks a pivotal shift, offering unprecedented transparency into the company's crucial cloud segment, which is a direct competitor to Amazon Web Services (AWS) and Google Cloud Platform.
The announcement, made through a presentation on Wednesday, accompanies a broader corporate restructuring. Microsoft is streamlining its internal operating segments, reducing them from three to two – a framework that has been in place since 2015.
Microsoft CEO Satya Nadella speaks at the Microsoft AI Tour in Sydney on April 23, 2026. | George Chan | Getty Images News | Getty Images
Azure has been a primary beneficiary of the surging artificial intelligence boom, as businesses increasingly rely on major cloud infrastructure platforms to access the necessary AI models for developing new agents and tools. Analysts from Stifel estimated in July that roughly half of Azure's revenue growth in fiscal year 2026 stemmed from OpenAI, with Anthropic also growing its reliance on Microsoft's cloud infrastructure.
CEO Satya Nadella highlighted the profound impact of AI in his presentation, stating, "There's no question AI represents a profound shift in both technology and business. It is changing what we build and how we operate, and it is blurring the boundaries between our products and reshaping our business models."
Competitors like Amazon began detailing AWS revenue in 2015, and Alphabet (Google's parent company) started revealing total revenue for Google Cloud Platform and Workspace subscriptions in 2020. Microsoft, however, had previously only offered year-over-year growth rates for Azure, with actual annual sales figures only being provided since last year.
Under the new reporting structure, Azure will specifically focus on its consumption-based platform and infrastructure business, as Nadella clarified. This means it will exclude GitHub cloud services, developer cloud services, the Security Copilot assistant, and various healthcare and life sciences cloud products. Previously, Microsoft included revenue from acquisitions like GitHub and Nuance Communications within its broader 'Azure and other cloud services' metric.
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Moving forward, Microsoft's business operations will be divided into two segments: Agents and Infra, and Devices and Consumer. The Agents and Infra segment will encompass Azure, Microsoft 365 cloud products, productivity and server licensing, industry solutions, and frontier and support services. The Devices and Consumer segment will include search and advertising, Xbox, and revenue from device sales and Windows operating system licenses.
This new structure will allow Microsoft to better showcase the momentum of its AI assistants, such as Microsoft 365 Copilot for commercial clients and the GitHub Copilot coding agent. In July, Microsoft reported over 30 million paid seats for 365 Copilot, an increase from over 20 million in April.
Microsoft is also providing two years of recast financial results and adjusted guidance to align with the new structure, though it will no longer disclose costs and operating margins for the former three segments. Based on the new structure, Azure revenue climbed 42% to $29.42 billion in the June quarter, compared to 43% under the previous 'Azure and other cloud services' metric. This means Azure accounted for nearly 33% of Microsoft's total revenue in the most recent period.
Management projects fiscal first-quarter Azure revenue growth of 44% to 45% at constant currency, slightly adjusted from the previous 45% growth outlook for 'Azure and other cloud services'. The company is targeting $75.15 billion to $75.75 billion in Agents and Infra revenue and $14.7 billion to $15.2 billion in Devices and Consumer revenue. Overall revenue, cost of revenue, and operating expenses outlook remain unchanged.
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