Microsoft to reveal Azure cloud sales in financial reporting shift

Microsoft has announced a significant change to its financial reporting, revealing that it will now disclose sales from its Azure cloud computing unit on a quarterly basis. This move will enable direct comparison with its top competitors, Amazon.com and Alphabet's Google, as they vie for dominance in the computing market driven by the AI data center boom. Previously, Microsoft reported a growth rate for Azure but did not disclose its sales figures.

The company will now operate under two reporting segments: "Agents and Infra," which encompasses its cloud computing services, sales from AI-based software, and revenue from traditional business software. The second segment, "Devices and Consumer," will cover its Windows operating system, Xbox gaming unit, and advertising sales across Bing search engine and LinkedIn, the business-focused social network.

Microsoft CEO Satya Nadella emphasized that AI is causing a profound shift in both technology and business, altering how the company builds products and operates. This change will blur the boundaries between its products and reshape its business models. Notably, Microsoft is a major cloud computing provider to OpenAI, which exclusively used Microsoft for training its models until a change in the terms of its deal allowed it to collaborate with Amazon Web Services and others. Amazon Web Services reported $128.7 billion in sales in calendar 2025.