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Microsoft Reboots Azure Reporting
3 Sep
Summary
- Microsoft will report Azure revenue in dollars quarterly.
- Operating segments are reduced from three to two.
- New reporting lines are Agents and Infra, and Devices and Consumer.
Microsoft is implementing a major change in its financial reporting, beginning with the June quarter, by disclosing Azure revenue in U.S. dollars on a quarterly basis for the first time. This shift accompanies a broader restructuring that consolidates the company's operating segments from three down to two, a change from the framework in place since 2015.
The revised reporting methodology excludes specific cloud offerings such as GitHub cloud services, developer cloud services, the Security Copilot assistant, and healthcare and life sciences cloud products. This creates a more focused view of Azure as a "consumption-based platform and infrastructure business," which saw a 42% revenue increase to $29.42 billion in the June quarter.
While Microsoft will supply two years of recast results and adjusted guidance, it will cease reporting costs and operating margins for the former three segments. The two new reporting lines are Agents and Infra, with projected revenue between $75.15 billion and $75.75 billion, and Devices and Consumer, guided between $14.7 billion and $15.2 billion. Azure is anticipated to grow between 44% and 45% at constant currency in the upcoming first quarter.
