Microsoft is changing the map Wall Street uses to follow its AI business. Beginning in fiscal 2027, the company will replace its three legacy operating segments with two: Agents and Infra, and Devices and Consumer.
The change also sets up a cleaner Azure comparison. Microsoft will start disclosing quarterly Azure revenue in dollars in FY27 Q1 under a narrower definition. GitHub cloud and other developer cloud services, along with Security Copilot, move to M365 commercial cloud, while Healthcare and Life Sciences cloud moves to Industry solutions cloud.
On the restated basis, FY26 Azure revenue was $101.9 billion. Q4 FY26 Azure revenue was $29.4 billion, up 42% year over year. The FY27 Q1 dollar disclosure will provide the first apples-to-apples Azure dollar print under the narrower definition.
Microsoft guides to Azure growth of 44% to 45% in constant currency for FY27 Q1. It expects Agents and Infra revenue of $75.15 billion to $75.75 billion and Devices and Consumer revenue of $14.7 billion to $15.2 billion.
The total-company FY27 Q1 outlook for revenue, cost of revenue and operating expenses is unchanged. Microsoft will stop showing costs and operating margins for the three legacy segments, so comparisons with earlier segment disclosures will require the restated view.
Microsoft disclosed the changes in its Sept. 2, 2026, 8-K, Exhibit 99.1. CNBC’s report is secondary coverage of the change.