Story
Microsoft to Disclose Azure Cloud Revenue in Major Reporting Change
Microsoft announced on Wednesday it will overhaul its financial reporting structure to begin disclosing quarterly sales figures for its Azure cloud computing division. The move provides investors with a new level of transparency and allows for a direct comparison with top competitors Amazon.com and Alphabet's Google amid a boom in AI-driven data center demand.
Previously, the company reported a closely watched growth rate for Azure but did not break out its absolute revenue. This change marks a significant shift in the company's disclosure strategy for one of its most critical business units.
New Reporting Segments
Microsoft will consolidate its operations from three reporting segments into two. The new structure is designed to reflect how the company views its business in the age of artificial intelligence.
- Agents and Infra: This segment will house the company's core cloud and enterprise offerings, including Azure cloud services, AI-based software, and traditional business software.
- Devices and Consumer: This group will include the Windows operating system, the Xbox gaming unit, and advertising revenue from both the Bing search engine and the LinkedIn professional network.
AdContext for Investors
The decision to provide specific Azure sales figures will allow analysts and investors to make more direct, apples-to-apples comparisons with market leader Amazon Web Services (AWS) and Google Cloud. For context, AWS reported $128.7 billion in sales in calendar 2025.
In a statement, Microsoft CEO Satya Nadella said the change reflects the evolving nature of the tech industry. "There’s no question AI represents a profound shift in both technology and business," Nadella said. "It is changing what we build and how we operate, and it is blurring the boundaries between our products and reshaping our business models."
Read next
More on Stocks
FTC Orders Walmart, Uber, Delta to Disclose Data on Personalized Pricing
The U.S. Federal Trade Commission is demanding nine major companies, including leading retail, travel, and gig economy firms, to provide information on how they use consumer data for setting individual prices and wages.
Google Launches Gemini 4 Carbon AI Model to Bolster Cybersecurity Capabilities
Alphabet's Google has unveiled Gemini 4 Carbon, its latest AI model specifically designed for advanced cybersecurity tasks like vulnerability detection and secure code generation. The launch escalates competition with rivals OpenAI and Anthropic in the enterprise AI market.
Oracle Shares Surge After Unveiling $225 Billion Revenue Target for 2030
Oracle stock rose sharply after the company presented a long-term financial outlook targeting at least $225 billion in annual revenue by fiscal 2030, driven by its expanding AI infrastructure business.
DOJ Scrutinizes Nvidia's $12.9B Hugging Face Deal Amid Broader Antitrust Probe, Sources Say
The U.S. Department of Justice is reportedly examining Nvidia's planned $12.93 billion acquisition of AI platform Hugging Face as part of a wider, ongoing antitrust investigation into the chipmaker's market conduct.