Microsoft discloses Azure revenue for the first time in reporting overhaul

Microsoft ↘ 0.84% on Wednesday disclosed standalone revenue figures for its Azure cloud unit for the first time, ending years of investor pressure for greater transparency into one of the tech industry's most closely watched businesses. The company revealed that Azure generated $29.4 billion in quarterly revenue and $101.9 billion for the fiscal year ended June 30, as part of a sweeping restructuring of its financial reporting.cnbc+1

The move gives Wall Street a direct basis for comparison with rivals Amazon Web Services Amazon.com, Inc. ↗ 0.02% and Alphabet's ↗ 0.53% Google Cloud, which have disclosed cloud revenue in dollar terms for years. AWS reported $128.7 billion in calendar 2025 sales, while Google Cloud posted $24.8 billion in its most recent quarter.finimize+1

A Decade-Old Structure Replaced

Microsoft is consolidating its three reporting segments into two, marking its first major reorganization since 2015. The new structure, set to take effect with fiscal first-quarter 2027 results this fall, will consist of "Agents and Infra" — combining Azure, Microsoft 365 commercial cloud products, and server licensing — and "Devices and Consumer," which will house Windows, Xbox, search and advertising, and LinkedIn.investing+1

Under a narrower definition, Azure will exclude GitHub cloud services, Security Copilot, and healthcare cloud products. "Under this reporting structure, Azure becomes more purely our consumption-based platform and infrastructure business," CEO Satya Nadella wrote in a presentation accompanying the changes.cnbc

AI Reshaping the Business

The restructuring reflects how deeply artificial intelligence has reshaped Microsoft's operations. Nadella said in a statement that AI "is changing what we build and how we operate, and it is blurring the boundaries between our products and reshaping our business models."wsau+1

Analysts at Stifel estimated in July that about half of Azure's revenue growth in fiscal 2026 came from OpenAI, according to CNBC, while Anthropic has also become more reliant on Microsoft's cloud infrastructure. Microsoft reported full fiscal year 2026 revenue of $331.8 billion, up 18% year over year, and guided fiscal 2027 capital expenditures toward roughly $175 billion, directed at data centers and custom silicon for AI workloads.cnbc+1

Under the revised Azure definition, revenue grew 42% to $20.71 billion in the June quarter, compared with 43% under the prior, broader metric. Shares edged higher in extended trading following the announcement.investing+1