Key Stats for Microsoft Stock
- Price change for Microsoft stock in last 6 months: 23%
- $MSFT Stock Price as of Sep. 2: $497
- 52-Week High: $554
- $MSFT Stock Price Target: $571
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What Happened?
Microsoft (MSFT) stock is in focus after the company announced a big change: for the first time, it will disclose standalone quarterly revenue for Azure, its cloud computing business.
This gives investors a much clearer view of how Azure stacks up against Amazon Web Services and Google Cloud.
The move is part of a bigger overhaul. Microsoft is cutting its reporting segments from three down to two, a structure that had been in place since 2015.
CEO Satya Nadella explained the reasoning simply: AI is reshaping how the company builds products and runs its business, and the old reporting setup no longer captured that shift.
For context, Amazon has reported AWS revenue since 2015, and Alphabet started breaking out Google Cloud numbers back in 2020.
Microsoft has lagged both, only offering Azure’s growth rate for years and adding actual annual sales figures starting last year.
This new quarterly disclosure finally puts Microsoft stock investors on more even footing with peers covering Amazon and Alphabet.
There’s a catch, though. The “new” Azure will look narrower than before. It will now exclude GitHub cloud services, developer cloud services, the Security Copilot assistant, and healthcare and life sciences cloud products.
Nadella described this as making Azure “more purely” a consumption-based infrastructure business.
Microsoft is also restructuring its whole segment lineup. Going forward, there will be just two: Agents and Infra, and Devices and Consumer.
Agents and Infra will house Azure, Microsoft 365 cloud products, productivity and server licensing, industry solutions, and frontier support services.
Devices and Consumer will cover search and advertising, Xbox, and device or Windows license sales to manufacturers.
This new setup also lets Microsoft show off its AI assistant momentum more directly. The company noted it now has over 30 million paid seats for Microsoft 365 Copilot, up from more than 20 million back in April.
On the numbers side, under the new structure, Azure grew 42% to $29.42 billion in the June quarter, compared to 43% under the old “Azure and other cloud services” metric.
That’s a small but real difference worth watching. Management is guiding for 44% to 45% Azure growth in constant currency for fiscal Q1, versus the 45% growth previously guided for the broader old metric.
Microsoft also gave first targets for the new segments: $75.15 billion to $75.75 billion for Agents and Infra, and $14.7 billion to $15.2 billion for Devices and Consumer.
Importantly, the outlook for total company revenue, cost of revenue, and operating expenses remains unchanged.
See analysts’ growth forecasts and price targets for Microsoft stock (It’s free) >>>
What the Market Is Telling Us About Microsoft Stock
This transparency push should help Microsoft stock investors better track how much of the company’s growth comes from AI-driven cloud demand versus other businesses.
With analysts estimating that a significant chunk of recent Azure growth ties back to AI partners like OpenAI, having a cleaner, standalone Azure number makes it easier to judge whether that momentum is holding up.
Expect this new reporting format to become the go-to reference point for Microsoft stock analysis.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
