Microsoft has unveiled a significant overhaul of its financial reporting structure, separating its businesses into two segments: Agents and Infra, and Devices and Consumer. The move marks the first time the company will disclose Azure's quarterly revenue, reflecting the growing importance of cloud computing in its operations.

The Devices and Consumer segment will now include revenues from Xbox, Windows, and LinkedIn, while the Agents and Infra segment will house Azure, Microsoft 365, and server products. CEO Satya Nadella highlighted the impact of AI on both technology and business, stating it is 'changing what we build and how we operate.'

The transition to this new reporting structure underscores Microsoft's shift towards a more consumption-based business model, particularly with Azure. Nadella noted, 'Azure becomes more purely our consumption-based platform and infrastructure business,' reflecting the company's strategic focus.

By simplifying its reporting, Microsoft aims to provide clearer insights into its core businesses, allowing investors to better understand their performance. This change also aligns with the broader tech industry's move towards cloud services, making it easier to track and analyse growth in this sector.

Microsoft's first application of these new financial reporting changes will be during its first quarter fiscal 2027 earnings, scheduled for late October.