Microsoft reveals strong cloud growth amid financial reporting overhaul

Microsoft has reported a strong cloud growth with $92.3 billion in revenue and $33.6 billion in net income in its first quarter of the 2027 fiscal year, with a 19% increase in revenue and 32% increase in net income. The company has also changed its financial reporting structure, splitting its businesses into two segments: Agents and Infra, and Devices and Consumer. Agents and Infra, which includes Azure, Microsoft 365, and server products, made up 83% of the revenue and increased 25% year-over-year, while Devices and Consumer, which includes Windows, Xbox, and Surface, made up 17% of the revenue and decreased 3% year-over-year. Windows OEM and devices revenue dropped 22% year-over-year due to the RAMageddon crisis and a weaker PC market. Microsoft will now disclose Azure revenue on a quarterly basis, with Azure contributing $33.17 billion in revenue this quarter, up 48% year-over-year.