Does this 8-K change Microsoft's reported revenue, operating income, or earnings?

No. Total company revenue and operating income for fiscal 2026 are unchanged at $331.8 billion and $155.2 billion. The change reallocates revenue and expenses between segments and redefines certain product and metric categories. Consolidated results and total company guidance are unchanged.

Why is Microsoft changing its segments?

Management says the new structure reflects how the business is operated, how resources are allocated, and where the company is headed, with particular emphasis on AI. The goal is to group high-value apps, agents, models, and infrastructure in Agents and Infra, and advertising, Xbox, and Windows in Devices and Consumer, providing more transparency into key businesses.

How will Azure growth comparisons change for investors?

Azure no longer includes GitHub cloud, other developer cloud services, Security Copilot, or Healthcare and Life Sciences cloud. Those now sit in Microsoft 365 commercial cloud or Industry solutions cloud. Restated fiscal 2026 Azure growth is 40%, so investors should use the restated series when evaluating trends and avoid comparing it with previously reported Azure growth figures.

What does the updated fiscal 2027 Q1 outlook tell investors?

Management provided mechanical reallocations only. Total company revenue guidance remains $89.85 to $90.95 billion. Agents and Infra is guided to $75.15 to $75.75 billion and Devices and Consumer to $14.7 to $15.2 billion. Azure growth is guided to 44% to 45% in constant currency, and Microsoft 365 commercial cloud growth to about 17%. Operating margin, tax rate, and capex expectations are unchanged.

Are the new segments directly comparable with the old ones?

Not directly. The filing provides restated historical financials for fiscal 2025 and fiscal 2026 on the new basis, which investors should use for trend analysis. Comparisons against the old Productivity and Business Processes, Intelligent Cloud, and More Personal Computing figures will not be like-for-like because of the reassignment of businesses and revenue such as LinkedIn and Other revenue.

MSFT 8-K: Regulation FD

01—Abstract

Summary

Summary of the 8-K filed September 2, 2026. Cited figures are marked; the original filing is the authoritative source.

Microsoft's September 2, 2026 Form 8-K, furnished under Regulation FD, announces a restructuring of its reportable segments effective fiscal 2027.

The company will move from three segments (Productivity and Business Processes, Intelligent Cloud, and More Personal Computing) to two: Agents and Infra, and Devices and Consumer. The filing is a presentation of reporting changes, not a results release. It does not report new quarterly results or change consolidated guidance.

Its purpose is to align segment reporting with how management allocates resources and to give investors more granular visibility into key businesses such as Azure, Microsoft 365 Cloud, Industry solutions, and advertising. The restated history shows the economic weight of the new structure. For fiscal 2026, Agents and Infra generated $268.1 billion^a of revenue (about 81% of the $331.8 billion total) and $136.4 billion of operating income.

Devices and Consumer generated $63.7 billion^b of revenue and $18.9 billion of operating income. Total company revenue and operating income are unchanged. Several metrics move between segments: GitHub cloud and Security Copilot shift into Microsoft 365 commercial cloud, Healthcare and Life Sciences cloud and LinkedIn Talent and Sales Solutions move into Industry solutions cloud, and LinkedIn Marketing Solutions and Premium Subscriptions move into search and advertising.

Azure's definition narrows as a result. Restated Azure growth for fiscal 2026 is 40%, versus 41% (GAAP) as previously reported. For fiscal 2027 Q1, management kept total company revenue guidance at $89.85 to $90.95 billion^c and provided mechanical reallocations: Agents and Infra revenue of $75.15 to $75.75 billion and Devices and Consumer revenue of $14.7 to $15.2 billion.

Investors should treat the change as a presentation shift that improves comparability of the cloud and advertising franchises. The filing does not alter the underlying economics, and the new metric definitions should be used carefully when comparing against prior-period disclosures.

02—Key points

Key Highlights

Segment reorganization: Three reportable segments are consolidated into two, Agents and Infra and Devices and Consumer, beginning in fiscal 2027.
Fiscal 2026 restated scale: Agents and Infra recorded $268.1B revenue and $136.4B operating income; Devices and Consumer recorded $63.7B revenue and $18.9B operating income. Consolidated totals are unchanged at $331.8B revenue.
Metric redefinitions: Azure now excludes GitHub cloud, Security Copilot, and Healthcare and Life Sciences cloud, which move to Microsoft 365 commercial cloud or Industry solutions cloud. Search and advertising adds LinkedIn Marketing Solutions and Premium Subscriptions.
Restated Azure growth for fiscal 2026 is 40% for the full year, with Q4 at 42% (restated), compared with 43% for Q4 as originally reported.
Fiscal 2027 Q1 total company revenue guidance is unchanged at $89.85 to $90.95 billion, with no change to COGS, operating expense, other income, operating margin, tax rate, or capex (over $50 billion) outlook.
Segment-level Q1 revenue guidance is reallocated: Agents and Infra at $75.15 to $75.75 billion and Devices and Consumer at $14.7 to $15.2 billion. Management now expects Azure growth of 44% to 45% in constant currency and Microsoft 365 commercial cloud growth of about 17%.
The filing is furnished under Regulation FD and General Instruction B.2 of Form 8-K, so it is not deemed filed under Section 18 of the Exchange Act. It does not include new reported results.

03—Questions

Frequently Asked Questions

Does this 8-K change Microsoft's reported revenue, operating income, or earnings?
No. Total company revenue and operating income for fiscal 2026 are unchanged at $331.8 billion and $155.2 billion. The change reallocates revenue and expenses between segments and redefines certain product and metric categories. Consolidated results and total company guidance are unchanged.
Why is Microsoft changing its segments?
Management says the new structure reflects how the business is operated, how resources are allocated, and where the company is headed, with particular emphasis on AI. The goal is to group high-value apps, agents, models, and infrastructure in Agents and Infra, and advertising, Xbox, and Windows in Devices and Consumer, providing more transparency into key businesses.
How will Azure growth comparisons change for investors?
Azure no longer includes GitHub cloud, other developer cloud services, Security Copilot, or Healthcare and Life Sciences cloud. Those now sit in Microsoft 365 commercial cloud or Industry solutions cloud. Restated fiscal 2026 Azure growth is 40%, so investors should use the restated series when evaluating trends and avoid comparing it with previously reported Azure growth figures.
What does the updated fiscal 2027 Q1 outlook tell investors?
Management provided mechanical reallocations only. Total company revenue guidance remains $89.85 to $90.95 billion. Agents and Infra is guided to $75.15 to $75.75 billion and Devices and Consumer to $14.7 to $15.2 billion. Azure growth is guided to 44% to 45% in constant currency, and Microsoft 365 commercial cloud growth to about 17%. Operating margin, tax rate, and capex expectations are unchanged.
Are the new segments directly comparable with the old ones?
Not directly. The filing provides restated historical financials for fiscal 2025 and fiscal 2026 on the new basis, which investors should use for trend analysis. Comparisons against the old Productivity and Business Processes, Intelligent Cloud, and More Personal Computing figures will not be like-for-like because of the reassignment of businesses and revenue such as LinkedIn and Other revenue.

04—Continue

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