Microsoft Corporation has announced a restructuring of its financial reporting segments, effective for fiscal year 2027. According to an 8-K filing dated September 2, 2026, the company will transition from its current three-segment structure to two reportable segments: Agents and Infra and Devices and Consumer.
The filing, accompanied by presentation materials titled "FY27 Segments and Investor Metrics," states that this change is intended to provide increased transparency to investors by aligning financial reporting with how the business operates and allocates resources. Microsoft stated that the move reflects the profound shift AI represents in technology and business, which is blurring the boundaries between products and reshaping business models.
The new Agents and Infra segment will encompass the Microsoft Cloud, productivity and server licensing, and consulting and support businesses. Within this segment, Azure will be reported as a consumption-based platform and infrastructure business. Microsoft 365 Cloud will combine productivity, developer, and security app offerings. Additionally, a new Industry solutions metric will be created to report vertical commercial offerings across Dynamics, LinkedIn, and Healthcare.
The new Devices and Consumer segment will include Windows, Xbox, and advertising businesses. This structure consolidates advertising disclosures by adding LinkedIn Marketing Solutions and LinkedIn Premium Subscriptions to the prior Search advertising disclosure.
The company has also updated the definitions of various investor metrics to correspond with the new segment structure. These updates include the Azure revenue growth metric, which now reflects the move of GitHub cloud and Security Copilot revenue to Microsoft 365 commercial cloud, and the creation of a new Industry solutions cloud revenue growth metric.
