Microsoft uploaded a document titled “FY27 Segments and Investor Metrics” to its investor relations website on Wednesday and filed it as an 8-K exhibit with the U.S. Securities and Exchange Commission. According to the document, starting in fiscal year 2027, Microsoft will consolidate its three existing reporting segments—Productivity and Business Processes, Intelligent Cloud, and More Personal Computing—into two: Agents and Infra, and Devices and Consumer. The company also announced it will disclose Azure dollar revenue on a quarterly basis. Under the new methodology, Azure revenue for the fourth quarter of fiscal 2026 ended June 30 was $29.417 billion, up 42% year over year. Shares rose about 1.4% in after-hours trading.

The core logic behind the restructuring is to align the reporting architecture more closely with Microsoft’s current operational focus and resource allocation. Chairman and Chief Executive Officer Satya Nadella explained the rationale in the document: Agents and Infra places “high-value applications and agents—including Microsoft 365 and GitHub—together with multi-model systems rooted in enterprise context, as well as Azure infrastructure at global scale.” Azure itself is now defined as “more purely our consumption-based platform and infrastructure business.” Specifically, the Agents and Infra segment encompasses Azure, Microsoft 365 cloud (commercial and consumer), productivity and server licensing, industry solutions, and Frontier and support services. The Devices and Consumer segment includes search and advertising, Xbox content and hardware, and Windows OEM and devices. The company stated that within each segment it will fully disclose quarterly revenue for key businesses such as Azure, Microsoft 365 cloud, industry solutions, and advertising, significantly enhancing revenue transparency.

Alongside the segment changes, Microsoft narrowed the Azure revenue definition. GitHub cloud, other developer cloud services, and Security Copilot will move from Azure into Microsoft 365 cloud; healthcare and life sciences cloud moves into the new “industry solutions cloud” metric. This adjustment explains the difference in growth rates between the old and new definitions: under the old methodology, “Azure and other cloud services” grew 43% in the June quarter, while under the new definition, Azure grew 42%—a small gap but with different implications. Management guided for Azure growth of 44% to 45% in constant currency for the first quarter of fiscal 2027, with foreign exchange expected to be a drag of less than one percentage point. In July, the old methodology had guided for roughly 45% constant-currency growth for “Azure and other cloud services.” The company explicitly attributed the difference to items like GitHub being reclassified to Microsoft 365 cloud, not to a sudden weakening in demand. This clarification aims to dispel concerns that the new definition might mask a growth slowdown.

At the segment level, Microsoft provided revenue guidance for the first quarter of fiscal 2027: Agents and Infra is expected to be between $75.15 billion and $75.75 billion, while Devices and Consumer is expected to be between $14.7 billion and $15.2 billion. Total company revenue, cost of revenue, operating expenses, operating margin, effective tax rate, and capital expenditure guidance all remain unchanged from July 30. Capital expenditures remain stated as “more than $50 billion,” including the impact of useful life adjustments.

The restated historical data table provides quarterly dollar figures. Azure revenue for the four quarters of fiscal 2026 was $22.384 billion, $24.129 billion, $26.008 billion, and $29.417 billion, respectively, showing a clear upward trajectory; the prior-year periods were $16.021 billion, $17.337 billion, $18.540 billion, and $20.712 billion. Microsoft 365 cloud revenue for the quarter was $26.721 billion, with a full-year fiscal 2026 total of $100.299 billion. Search and advertising came in at $6.435 billion for the quarter, while Xbox was $4.983 billion. These figures allow investors, for the first time, to observe Azure’s growth curve in absolute dollar terms rather than relying solely on percentage growth.

With Microsoft’s first-ever disclosure of Azure dollar revenue, the market will naturally compare it with Amazon Web Services and Google Cloud. In the most recent reporting quarter, Amazon’s cloud business posted $42.2 billion in revenue, Google Cloud reported $24.8 billion, and Microsoft’s newly disclosed $29.417 billion sits in between. However, it is worth noting that the accounting boundaries of the three companies are not entirely aligned, so directly comparing them only addresses the question of “having dollar figures”—it cannot simply be treated as a precise market share ranking.

The timing of this reporting change is notable. The European Commission launched market investigations into Amazon Cloud and Azure in November 2025, formed a preliminary gatekeeper designation for Azure in June 2026, and a final decision is expected within the year. Nadella’s definition of Azure as “a more pure consumption-based platform and infrastructure” aligns closely with the regulatory boundary drawn by Brussels. The next full income statement under the new segment structure will be released with the fiscal 2027 first-quarter results. At that point, the market will see, for the first time, the complete profit-and-loss structure of the two new segments, as well as Azure’s performance under a more narrowly defined scope. The investor metrics table also restates growth rates for Microsoft 365 commercial cloud, seats, industry solutions cloud, and search advertising (excluding traffic acquisition costs), for comparison against the old series. Overall, the essence of this change is to bring financial reporting in line with Microsoft’s current business priorities—consumption-based infrastructure centered on Azure, and the application layer built around agents—rather than the legacy three-way split based on product form.