Microsoft is restructuring its financial reporting from three business segments to two, effective FY2027, to better reflect AI-driven transformation. The new structure—Agents and Infra (cloud, Microsoft 365, GitHub on Azure) and Devices and Consumer (Search, Xbox, Windows, advertising)—consolidates AI agents, infrastructure, and consumer offerings. CEO Satya Nadella cited AI as fundamentally reshaping business boundaries; the two groups had combined FY2026 revenue of ~$335 billion, signaling Microsoft's pivot toward enterprise AI and integrated cloud services as core growth drivers.