Microsoft Corporation (MSFT) is changing its reporting structure as AI reshapes its business. The new segments will be Agents and Infra and Devices and Consumer. Agents and Infra will combine Azure and server products with Microsoft 365 business software. Devices and Consumer will include Windows, Xbox gaming, search, and LinkedIn advertising revenue. The company will also report Azure sales separately each quarter, giving investors more insight into its cloud business, a key growth engine.
Microsoft’s Azure Sales Top $100B
Along with the reporting changes, Microsoft reported $29.4 billion in Azure sales for its latest quarter. That puts Azure behind Amazon’s (AMZN) AWS, which generated $42.2 billion in quarterly cloud sales, but ahead of Google’s (GOOGL) Cloud, which reported $24.8 billion.
Overall, Azure annual sales topped $100 billion in the fiscal year ended June, up from $75 billion a year earlier. The cloud unit now accounts for about 30% of Microsoft’s total revenue. The KPI chart below shows Microsoft’s revenue breakdown by segment.
How Will Microsoft Report Its Business Now?
Previously, Microsoft reported its business through three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The company will now report through two segments: Agents and Infra and Devices and Consumer. The new structure is meant to better reflect how Microsoft runs its business and the growing role of AI.
The shift marks Microsoft’s first major change to its reportable business segments since 2015. The new structure will take effect with its fiscal first-quarter results scheduled for October 2026.
For investors, the new structure should make it easier to track Azure, Microsoft 365, and other AI-driven businesses. The focus will now be on how these segments perform as Microsoft expands its cloud and AI operations.
Is MSFT Stock a Good Buy?
On TipRanks, MSFT stock has a Strong Buy consensus rating based on 32 Buys and one Hold assigned in the last three months. The average Microsoft price target of $568.31 implies a 14.4% upside potential from current levels.
