Microsoft has finally assigned a monetary value to Azure and clarified the specifications of what Azure encompasses.

      For the first time, Microsoft will report Azure revenue in dollars on a quarterly basis, having increased it by 42% to $29.42 billion in the June quarter under a new two-segment structure. In June, the European Commission reached a preliminary conclusion that Azure should be designated as a gatekeeper, with a final decision anticipated by the year’s end.

      This revenue reporting change coincides with a broader overhaul, as reported by CNBC. The figure is significant, as Azure's growth of 42% to $29.42 billion during the June quarter now represents nearly 33% of Microsoft's total revenue.

      The company's operating segments will be reduced from three to two, moving away from a structure that has been in place since 2015. The new segments will be labeled as Agents and Infra and Devices and Consumer, as indicated in the company's presentation.

      At the same time, the definition of Azure is becoming more focused. Services like GitHub cloud services, developer cloud services, the Security Copilot assistant, and healthcare and life sciences products are being excluded from this classification.

      "Azure becomes more purely our consumption-based platform and infrastructure business," stated Satya Nadella. This aligns closely with the standards Brussels has been establishing under its stringent tech regulations.

      In November 2025, the Commission initiated market investigations into Amazon Web Services and Azure. The focus was whether cloud services should have gatekeeper obligations under the Digital Markets Act.

      The strategy taken is important, as cloud infrastructure does not meet the monthly active end user thresholds that the DMA assumes, necessitating the Commission to substantiate the position without simply counting users.

      Doing so without revenue figures posed a challenge. While Amazon has disclosed AWS figures since 2015, Microsoft has only published its growth rates.

      In June, the Commission reached a preliminary conclusion that both platforms should receive this designation, in collaboration with the Dutch competition authority, concluding that they hold very strong market positions.

      Being designated as gatekeepers introduces interoperability requirements, restrictions on self-preferencing, and limitations on customer lock-in. Fines can reach up to 10% of global revenue, increasing to 20% for repeat violations.

      A final decision is expected later this year, and the first published figure for Azure will coincide with this decision. Microsoft hasn't linked the two developments, and there’s no indication that they should be connected. Changes of this magnitude typically require extensive preparation time.

      In July, analysts at Stifel estimated that approximately half of Azure's growth for the 2026 financial year could be attributed to OpenAI. Europe is about to receive a quarterly figure for infrastructure that its own analysts are already deeming a political risk.