Microsoft Corporation (MSFT.US) makes a significant adjustment to its financial report structure! Azure's quarterly revenue is published for the first time, surpassing 29 billion in a single quarter.

Microsoft Corporation (MSFT.US) will begin disclosing quarterly sales figures for its Azure cloud business. Previously, Wall Street had criticized the company for its lack of information regarding this crucial growth engine for years, but Microsoft Corporation has now changed its stance. Jonathan Nelson, head of investor relations, stated in an interview that, given the scale and significance of Azure, "now seems like the right time to provide greater transparency." In a document submitted on Wednesday, Microsoft Corporation provided quarterly revenue data for Azure over the past two years, showing that it has maintained steady growth, reaching $29.4 billion in the most recent quarter. Historically, Microsoft Corporation only disclosed the growth rate of its Azure business (which includes sales data storage and software services) rather than actual revenue. This has led to dissatisfaction among investors and analysts, who are seeking clearer insights into Azure's performance, as this business has become a bellwether for Microsoft Corporation's artificial intelligence efforts. Microsoft Corporation announced this planned accounting change, marking the company's first significant adjustment to its major reporting segments since 2015. The previous two reporting segmentsIntelligent Cloud (which includes Azure and server products) and Productivity and Business Processes (which includes Microsoft 365 and the legacy Office suite)will be merged into a single segment called "Agents and Infra." Meanwhile, the "More Personal Computing" segment, which includes Windows, search advertisements, and Xbox, will be renamed "Devices and Consumer." Microsoft Corporation's latest disclosure shows that Azure cloud is steadily growing. Microsoft Corporation is also making other reporting changes, including consolidating much of LinkedIn's growth with Bing search and other advertising-revenue-dependent businesses. This new structure will officially take effect when the company announces its first-quarter financial report for the new fiscal year this fall. Microsoft Corporation CEO Satya Nadella stated in a note regarding the reporting changes that the development of artificial intelligence "is changing the way we build products and operate, while also blurring the boundaries between our products and reshaping our business model." The company had previously disclosed Azure's revenue on a regular basis. Microsoft Corporation noted that in the fiscal year ending in June, the division's annual sales surpassed $100 billion, up from $75 billion in the previous fiscal year, accounting for approximately 30% of the company's total revenue. As early as 2015, Steve Ballmer had called for Microsoft Corporation to increase transparency around its cloud sales figures. The former Microsoft Corporation CEO and major shareholder stated during an interview at the time: "This is a key metric. If they believe it is critical to the company, they should disclose it."