Microsoft to disclose Azure quarterly revenue for first time, restructures into two segments

Microsoft CEO Satya Nadella speaks at the Microsoft AI Tour in Sydney on April 23, 2026. George Chan | Getty Images News | Getty Images

Microsoft will begin reporting quarterly revenue for its Azure cloud business in dollars for the first time, offering investors greater transparency into its operations that compete with Amazon Web Services and Google Cloud Platform.

The change, announced in a presentation on Wednesday, is part of a broader restructuring that reduces Microsoft's internal operating segments from three to two. The previous structure had been in place since 2015.

Key Changes

• Azure revenue disclosure: Microsoft will now report Azure revenue in dollar terms, rather than just providing year-over-year growth rates.
• Segment reduction: The company is consolidating from three operating segments to two.
• Revised Azure scope: Azure will exclude GitHub cloud services, developer cloud services, Security Copilot, and healthcare and life sciences cloud products.

Azure and the AI Boom

Microsoft's Azure unit has been a major beneficiary of the artificial intelligence boom, as customers turn to major cloud infrastructure platforms for access to AI models needed to develop new agents and other tools. Analysts at Stifel estimated in July that about half of Azure's revenue growth in the 2026 fiscal year came from OpenAI, while Anthropic has also become more reliant on Microsoft's cloud.

"There's no question AI represents a profound shift in both technology and business," CEO Satya Nadella wrote in the presentation. "It is changing what we build and how we operate, and it is blurring the boundaries between our products and reshaping our business models."

Industry Context

• Amazon began disclosing revenue from AWS, the market leader, in 2015.
• Alphabet, which ranks third in cloud, started providing total revenue from Google Cloud Platform and Workspace productivity subscriptions in 2020.
• Microsoft previously only provided the year-over-year growth rate for Azure, and began offering actual sales on an annual basis last year.

New Segment Structure

Going forward, Microsoft's two segments will be:

Agents and Infra

Includes:

• Azure and Microsoft 365 cloud products
• Productivity and server licensing
• Industry solutions
• Frontier and support services

Devices and Consumer

Includes:

• Search and advertising
• Xbox
• Revenue from device sales and Windows OS licenses to device makers

Azure's Refined Definition

"Under this reporting structure, Azure becomes more purely our consumption-based platform and infrastructure business," Nadella wrote in the deck.

In 2021, Microsoft began announcing growth from Azure and other cloud services, later incorporating some revenue from the GitHub and Nuance Communications acquisitions. Those will now be excluded from Azure's reported figures.

AI Assistant Momentum

Inside the Agents and Infra segment, Microsoft will be able to showcase momentum from a series of AI assistants, including:

• Microsoft 365 Copilot for commercial customers
• GitHub Copilot coding agent

Microsoft said in July that it had over 30 million paid seats for Microsoft 365 Copilot, up from more than 20 million as of April.

Financial Reporting Updates

Microsoft is also providing two years of recast financial results and adjusted guidance, but will stop showing costs and operating margins for the three old segments.

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