Microsoft (MSFT) Segments and investor metrics update presentation summary

Strategic update and segment restructuring

• Transitioning from three to two reporting segments: Agents and Infra, and Devices and Consumer, to better reflect business operations and resource allocation.

• Agents and Infra will include Microsoft Cloud, productivity and server licensing, consulting, and support, while Devices and Consumer will encompass Windows, XBOX, and advertising businesses.

• Product and service reporting definitions updated for greater transparency, impacting SEC filings and investor communications.

• New structure aligns financial reporting with the integration of AI and evolving business models, emphasizing architectural coherence and operational synergies.

Metric and reporting changes

• Azure revenue growth metric now excludes GitHub cloud and Security Copilot, which move to Microsoft 365 commercial cloud; Healthcare and Life Sciences cloud moves to Industry solutions.

• Microsoft 365 commercial cloud metrics now include GitHub cloud, Security Copilot, and other developer services.

• Industry solutions cloud revenue metric combines Dynamics 365, LinkedIn Talent and Sales Solutions, and Healthcare and Life Sciences cloud.

• Search and advertising revenue metric now includes LinkedIn Marketing Solutions and Premium Subscriptions.

Restated historical financials

• FY26 revenue for Agents and Infra was $268.1B with $136.4B operating income; Devices and Consumer had $63.7B revenue and $18.9B operating income.

• Total FY26 revenue as restated was $331.8B, with operating income of $155.2B.

• Product-level restatements reflect new segment definitions, with Azure, Microsoft 365 cloud, and Industry solutions now reported under Agents and Infra.