Microsoft started its new 2025 fiscal year for financial reporting on July 1. Along with the new fiscal year, Microsoft has decided to make some financial reporting changes.
Earlier this week, Microsoft quietly posted an investor presentation with the US Securities and Exchange Commission (via CNBC) with the new changes to its quarterly financial reports going forward. Microsoft will keep its three main financial categories (More Personal Computing, Intelligent Cloud, and Productivity and Business Processes) but will be shifting sub-categories around.
Microsoft's Productivity and Business Processes category previously included the Office products and cloud services sub-category. For the 2025 fiscal year, the company is splitting up that sub-category into two new ones. One of them is the Microsoft 365 Commercial products and cloud services, while the other is the Microsoft 365 Consumer products and cloud services.
Another change is that the More Personal Computing category will move the Windows commercial and cloud products out of the Windows sub-category and into the new Microsoft 365 Commercial products and cloud services sub-category for Productivity and Business Processes.
The More Personal Computing category will merge the Windows and Devices sub-category into the new Windows and Devices sub-category, which will include both Microsoft's Windows OEM, Devcies and "other" Windows teams. In addition, Microsoft's Copilot Pro revenues will now be reported under the More Personal Computing category.
Some of the other changes include moving revenue from Microsoft's Nuance Enterprise division from Intelligent Cloud to the Productivity and Business Processes category and moving revenue from its search and news advertising divisions from More Personal Computing to Intelligent Cloud where it will now show its numbers under its Azure and other cloud services division.
That Azure sub-category will also see its Power BI data analytics tool and the Enterprise Mobility and Security revenues moved into the Microsoft 365 Commercial products and cloud services sub-category under Productivity and Business Processes. Microsoft says this changes the highly watched (by financial analysts) Azure sub-category so it "now more closely aligns to consumption business."
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