Microsoft announced on September 2, 2026, that it will begin disclosing quarterly revenue for its Azure cloud business for the first time, alongside consolidating its operating segments from three to two [1, 2, 3]. The two new segments are “Agents and Infra,” which includes Azure, Microsoft 365 cloud, enterprise software licensing, and AI assistants, and “Devices and Consumer,” which covers Windows, Xbox, search, and advertising [1, 3].
For the quarter ended June 30, 2026, Azure generated approximately $29.4 billion in revenue, representing 42% year-over-year growth and making up about one-third of Microsoft’s total revenue [2, 3]. For the fiscal year ending June 30, 2026, Azure revenue totaled roughly $101.9 billion [2]. These figures do not include revenue from GitHub cloud services, developer cloud services, Security Copilot, or healthcare and life sciences cloud products under the new reporting structure [1, 3].
Microsoft CEO Satya Nadella said, “There’s no question AI represents a profound shift in both technology and business. It is changing what we build and how we operate, and it is blurring the boundaries between our products and reshaping our business models,” reflecting the company’s rationale for adjusting its operational and financial reporting [1, 2, 3].
Among major cloud providers, Microsoft Azure trails Amazon Web Services (AWS) but leads Google Cloud in quarterly sales. AWS reported $42.2 billion in cloud revenue in its most recent quarter, while Google Cloud posted $24.8 billion [2].
Microsoft’s Q1 fiscal 2027 revenue forecast projects $75.15 billion to $75.75 billion for the Agents and Infra segment and $14.7 billion to $15.2 billion for Devices and Consumer [3]. The company’s segment and revenue disclosure changes take effect with the current reporting period starting July 1, 2026.
