Microsoft to Reveal Azure Quarterly Revenue as 2-Segment Overhaul Recasts $29.42 Billion Cloud Business
Updated
Updated · CNBC · Sep 2
Microsoft to Reveal Azure Quarterly Revenue as 2-Segment Overhaul Recasts $29.42 Billion Cloud Business
3 articles · Updated · CNBC · Sep 2
Summary
$29.42 billion in June-quarter Azure revenue will be disclosed under Microsoft's new reporting format, the first time investors will get quarterly sales for the cloud unit rather than only growth rates.
Two operating segments will replace three from fiscal first quarter: Agents and Infra, which houses Azure and Microsoft 365 cloud products, and Devices and Consumer, which includes Windows, Xbox, search and advertising.
42% Azure growth under the new definition was slightly below the old 43% Azure-and-other-cloud-services metric because Microsoft is stripping out GitHub cloud services, Security Copilot, healthcare and life sciences cloud products, and other items.
44% to 45% constant-currency Azure growth is still forecast for the current quarter, while overall company revenue, cost of revenue and operating-expense guidance remains unchanged.
AI demand is driving the reshuffle: Azure now accounts for nearly 33% of Microsoft's revenue, and the company is also highlighting faster-growing AI software businesses such as Microsoft 365 Copilot, which had more than 30 million paid seats in July.