- Microsoft will report Azure revenue separately in dollars for the first time and move to Agents and Infra plus Devices and Consumer segments.
- Under the recast metric, Azure revenue rose 42% to $29.42 billion in the June quarter, representing almost 33% of Microsoft’s total revenue; fiscal Q1 growth is guided to 44%-45% at constant currency.
- The new Azure definition excludes GitHub cloud services, developer cloud services, Security Copilot, and healthcare and life sciences cloud products, while Microsoft will provide two years of recast results.
- The bullish long-term case for MSFT depends on Azure sustaining more than 30% growth, Copilot scaling beyond 30 million paid seats, and capital-spending intensity normalizing; FY26 capex reached about $116 billion and FY27 capex is estimated at roughly $175 billion.
Quotes
“Under this reporting structure, Azure becomes more purely our consumption-based platform and infrastructure business”
“There's no question Al represents a profound shift in both technology and business”
“I've never been more confident in Microsoft's opportunity to drive durable long-term growth.”