Microsoft will begin publishing quarterly Azure revenue in dollars for the first time, CNBC reported from a Wednesday presentation by CEO Satya Nadella. The change is part of a reporting overhaul that collapses three operating segments, in place since 2015, into two: Agents and Infra, and Devices and Consumer.
“Under this reporting structure, Azure becomes more purely our consumption-based platform and infrastructure business,” Nadella wrote in the deck, according to CNBC. GitHub cloud, Security Copilot, and health and life sciences cloud products move out of the Azure line. Developer cloud services are also out. What remains is meant to look more like a consumption and infrastructure number, closer to how investors already read Amazon Web Services.
Under the new cut, Azure grew 42 percent to $29.42 billion in the June quarter, versus 43 percent on the old “Azure and other cloud services” metric, CNBC said. That is about 33 percent of Microsoft’s total revenue. Management guided fiscal first-quarter Azure growth at 44 percent to 45 percent in constant currency. In July, the company had guided 45 percent for the broader old metric.
Agents and Infra will hold Azure, Microsoft 365 cloud, productivity and server licensing, industry solutions, and what Microsoft calls frontier and support services. Devices and Consumer will hold search and advertising, Xbox, device sales, and Windows licenses sold to PC makers. Microsoft is recasting two years of results and will stop showing costs and operating margins for the three old segments. Overall revenue, cost of revenue, and operating expense outlooks are unchanged, CNBC reported.
Amazon has disclosed AWS revenue since 2015. Alphabet has reported Google Cloud plus Workspace since 2020. Microsoft had given Azure a growth rate, and only recently an annual dollar figure. Stifel estimated in July that about half of Azure’s fiscal 2026 growth came from OpenAI. That is an analyst estimate, not a Microsoft disclosure.
Nadella also wrote that AI is “changing what we build and how we operate” and “blurring the boundaries between our products.” The new boxes are how the company wants that blur read.
Azure now has a price tag. The old three-segment map does not.
Sources
https://www.cnbc.com/2026/09/02/microsoft-to-disclose-azure-revenue-as-part-of-segment-changes.html