Overview
- Microsoft announced on Sept. 2 that it will for the first time disclose quarterly revenue for Azure and will recast two years of results under the new definition.
- The company will move from three reporting segments to two named Agents and Infra and Devices and Consumer, and it will stop publishing costs and operating margins for the old three segments.
- Under the new Azure definition Microsoft excludes GitHub cloud services, developer cloud services, the Security Copilot assistant, and healthcare and life sciences cloud products from the metric.
- With the recast June quarter figures Azure revenue was $29.42 billion, up 42% year over year and equal to about one-third of Microsoft’s total revenue.
- Analysts say part of Azure’s recent growth comes from large AI customers such as OpenAI and Anthropic, and the new reporting will make sales easier to compare with rivals while reducing visibility into segment-level profitability.