Microsoft offers first quarter outlook under new segment structure

Microsoft Corp (NASDAQ:MSFT) unveiled its first-quarter revenue forecast on Wednesday, utilizing a new segment-based reporting system set to begin in fiscal year 2027. The company has divided its business into two primary segments: Agents and Infra, encompassing Microsoft Cloud, productivity and server licensing, along with consulting and support services; and Devices and Consumer, which includes Windows, Xbox, and advertising operations.

Despite the segmental restructuring, Microsoft has kept its overall fiscal first-quarter revenue guidance unchanged, predicting it to fall between $89.85 billion and $90.95 billion. For the Agents and Infra segment, the company anticipates revenue to range from $75.15 billion to $75.75 billion. Meanwhile, the Devices and Consumer segment is projected to generate earnings of $14.7 billion to $15.2 billion in the first quarter.

Microsoft is optimistic about Azure's growth, projecting a 44% to 45% increase in constant currency revenue for the first quarter. This report was produced with AI assistance and subsequently reviewed by a human editor.