Slide 1: FY27 Segments and Investor Metrics
FY27 Segments and Investor Metrics September 2026 Exhibit 99.1
Slide 2: Forward-looking statements
This presentation contains forward-looking statements, which are any predictions, projections, or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could materially differ because of fa
Slide 3: Agenda
All growth comparisons in this presentation relate to the corresponding period of last fiscal year unless otherwise noted. Numbers may not foot due to rounding. Agenda A note from Satya Updates for FY27 Segment Structure Metric Changes Restated Historical Financials FY27 Q1 Adjusted Outlook
Slide 4: Our updated segment reporting
Our updated segment reporting Satya Nadella, Chairman and Chief Executive Officer of Microsoft There’s no question AI represents a profound shift in both technology and business. It is changing what we build and how we operate, and it is blurring the boundaries between our products and reshaping our
Slide 5: Our updated segment reporting
Our updated segment reporting Satya Nadella, Chairman and Chief Executive Officer of Microsoft Our Agents and Infra segment brings together our high-value apps and agents, including Microsoft 365 and GitHub, our multi-model system grounded in rich-enterprise context, and global-scale Azure infrastru
Slide 6: Segment Structure
Segment Structure
Slide 7: Transition to two reporting segments for FY27
We will transition to two reporting segments for FY27. Agents and Infra will include the Microsoft Cloud, productivity and server licensing, and our consulting and support businesses. Devices and Consumer will include our Windows, XBOX, and advertising businesses. With these segment changes and to p
Slide 8: Devices and Consumer; FY27 segment changes and new reporting
Devices and Consumer Search and advertising brings together our advertising businesses by adding LinkedIn Marketing Solutions, along with LinkedIn Premium Subscriptions, to the prior Search advertising disclosure XBOX is unchanged Windows OEM and devices was previously reported as Windows and Device
Slide 9: FY27 Segment Structure vs FY26 Segment Structure
Segment Structure FY27 Segment Structure Agents and Infra Azure Microsoft 365 cloud Microsoft 365 commercial cloud Microsoft 365 consumer cloud Productivity and server licensing Server products Microsoft 365 commercial products Microsoft 365 consumer products Industry solutions Industry solutions cl
Slide 10: Metric Changes
Metric Changes
Slide 11: Updated metrics from product and service reporting changes
As a result of the product and service reporting updates, the following metrics have been updated: Azure revenue growth metric definition has been updated to reflect the move of GitHub cloud and other developer cloud services revenue, and the move of Security Copilot revenue to Microsoft 365 commerc
Slide 12: FY26 and FY27 Investor Metrics
Investor Metrics FY26 Investor Metrics Commercial; Intelligent Cloud; Productivity & Business Processes Commercial bookings growth Commercial remaining performance obligation Microsoft Cloud revenue and revenue growth Microsoft Cloud gross margin percentage Azure and other cloud services revenue gro
Slide 13: Investor metric definitions
Commercial bookings growth: for commercial products and cloud services, sum of revenue growth, plus change in balance of unearned revenue plus the change in contracted not billed balance Commercial remaining performance obligation: commercial portion of revenue allocated to remaining performance obl
Slide 14: Restated Historical Financials
Restated Historical Financials
Slide 15: Restated financials: Agents and Infra, Devices and Consumer
($ in millions) 2026 2025 Agents and Infra Q1 Q2 Q3 Q4 Fiscal Year Q1 Q2 Q3 Q4 Fiscal Year Revenue $61,672 $64,441 $67,438 $74,576 $268,127 $50,476 $52,766 $54,763 $60,778 $218,783 Cost of revenue $17,701 $19,307 $20,949 $23,460 $81,417 $13,619 $14,630 $15,510 $17,533 $61,292 Operating expenses $11,
Slide 16: Prior segments: Productivity and Business Processes, Intelligent Cloud
($ in millions) 2026 2025 Productivity and Business Processes Q1 Q2 Q3 Q4 Fiscal Year Q1 Q2 Q3 Q4 Fiscal Year Revenue $33,020 $34,116 $35,013 $37,847 $139,996 $28,317 $29,437 $29,944 $33,112 $120,810 Cost of revenue $5,721 $6,110 $6,197 $6,989 $25,017 $5,294 $5,569 $5,517 $6,042 $22,422 Operating ex
Slide 17: Products and Service Offerings Revenue As Reported
Products and Service Offerings Revenue As Reported 2026 2025 ($ in millions) Q1 Q2 Q3 Q4 Fiscal Year Q1 Q2 Q3 Q4 Fiscal Year Server products and cloud services $28,872 $30,865 $32,592 $37,096 $129,425 $22,155 $23,641 $24,761 $27,878 $98,435 Microsoft 365 commercial products and cloud services $23,96
Slide 18: FY27 Investor Metrics As Reported
FY27 Investor Metrics As Reported 2026 Q1 Q2 Q3 Q4 Fiscal Year Azure and other cloud services revenue growth (y/y) 40% / 39% 39% / 38% 40% / 39% 43% 41% / 40% Microsoft 365 commercial cloud revenue growth (y/y) 17% / 15% 17% / 14% 19% / 15% 14% 17% / 14% Microsoft 365 commercial seat growth (y/y) 6%
Slide 19: FY27 Q1 Adjusted Outlook
FY27 Q1 Adjusted Outlook
Slide 20: FY27 Q1 Outlook
FY27 Q1 Outlook We will report our FY27 Q1 results in the structure discussed on the prior slides. Therefore, we have provided mechanical adjustments only to our outlook as provided on July 29, 2026, for the changes discussed in this presentation. As provided on July 29, 2026 Foreign currency impact
Slide 21: FY27 Q1 Outlook Detail
FY27 Q1 Outlook Detail As provided July 29, 2026 Commercial Business Commercial bookings Healthy growth on a growing expiry base when adjusted for OpenAI contracts in the prior year Microsoft Cloud gross margin percentage Relatively stable quarter-over-quarter Productivity and Business Processes Mic
Slide 22: Microsoft
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