Microsoft to Change Reporting Structure to Reflect Effects of AI

By Stephen Nakrosis

Microsoft is changing its reporting structure from three segments to two - Agents and Infra and Devices and Consumer - as the company responds to changes brought about by artificial intelligence.

Previously, Microsoft's reporting segments consisted of Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.

Satya Nadella, chairman and chief executive officer, said AI represents a "profound shift" in technology and business, and is changing what the company builds and how it operates. In addition, AI is blurring boundaries between the company's products and reshaping its business models, Nadella said.

The Agents and Infra segment will encompass apps and agents, which include Microsoft 365 and GitHub, the multi-model system grounded in rich-enterprise context, and global-scale Azure infrastructure, Microsoft said. Meanwhile, Devices and Consumer will contain search and advertising, XBOX, and Windows, according to the company. The new structure brings the company's advertising businesses together, Microsoft added.

The Agents and Infra segment is expected to report fiscal year 2027 first-quarter revenue of $75.15 billion to $75.75 billion. Devices and Consumer is expected to report first-quarter revenue between $14.7 billion and $15.2 billion, the company said.

Microsoft said it will also update several other metrics as a result of these changes.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

September 02, 2026 17:24 ET (21:24 GMT)