Microsoft Segment Revenue Breakdown — Productivity, Cloud, and Computing

Software. Pexels Image.

This page presents Microsoft’s segment revenue, consisting of sales generated from the following divisions:

• Productivity and Business Processes,
• Intelligent Cloud, and
• More Personal Computing.

For your information, Microsoft reorganized how it reports its segment revenue starting in fiscal 2025. However, only the revenue composition has changed while the business segments have remained the same.

Let’s look at the revenue breakdown results!

For other statistics of Microsoft Corporation, you may find more information on this page: Microsoft key stats.

Please use the table of contents to navigate this page.

Definitions

To help readers understand the content better, the following terms and glossaries have been provided.

Productivity and Business Processes:

Microsoft’s Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. This segment primarily comprises:

• Microsoft 365 Commercial products and cloud services, including Microsoft 365 Commercial cloud, comprising Microsoft 365 Commercial, Enterprise Mobility + Security, the cloud portion of Windows Commercial, the per-user portion of Power BI, Exchange, SharePoint, Microsoft Teams, Microsoft 365 Security and Compliance, and Microsoft 365 Copilot; and Microsoft 365 Commercial products, comprising Windows Commercial on-premises and Office licensed on-premises.

• Microsoft 365 Consumer products and cloud services, including Microsoft 365 Consumer subscriptions, Office licensed onpremises, and other consumer services.

• LinkedIn, including Talent Solutions, Marketing Solutions, Premium Subscriptions, and Sales Solutions.

• Dynamics products and cloud services, including Dynamics 365, comprising a set of intelligent, cloud-based applications across ERP, CRM, Power Apps, and Power Automate; and on-premises ERP and CRM applications.

Intelligent Cloud:

Microsoft’s Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services that power modern business and developers. This segment primarily comprises:

• Server products and cloud services, including Azure and other cloud services, comprising cloud and AI consumption-based services, GitHub cloud services, Health and Life Sciences cloud services (formerly Nuance Healthcare cloud services), virtual desktop offerings, and other cloud services; and Server products, comprising SQL Server, Windows Server, Visual Studio, System Center, related Client Access Licenses, and other on-premises offerings.

• Enterprise and partner services, including Enterprise Support Services, Industry Solutions, Microsoft Partner Network, and Learning Experience.

More Personal Computing:

Microsoft’s More Personal Computing segment consists of products and services that put customers at the center of the experience with its technology. This segment primarily comprises:

• Windows and Devices, including Windows OEM licensing (Windows Pro and non-Pro licenses sold through the OEM channel) and Devices, comprising Surface and PC accessories.

• XBOX (formerly Gaming), including XBOX hardware and XBOX content and services, comprising first- and third-party content (including games and in-game content), XBOX Game Pass and other subscriptions, XBOX Cloud Gaming, advertising, and other cloud services.

• Search advertising (formerly Search and news advertising), comprising Bing, Copilot, Microsoft News, Microsoft Edge, and thirdparty affiliates.

Back To Table Of Contents

Insight & Summary of Microsoft’s Revenue Breakdown By Segment

Microsoft’s revenue has grown steadily in both datasets, and its composition has shifted decisively toward Intelligent Cloud. On the new composition, total revenue compounded at about 16% a year over FY2023–FY2026, and Intelligent Cloud supplied roughly 54% of the incremental dollars. The legacy series shows this is a decade-long transition rather than a recent one.

• Intelligent Cloud: Acceleration on a Larger Base Intelligent Cloud compounded at about 24% a year over the new-composition window, and its growth stepped up to 29.7% in FY2026. The segment added $31.5B in that year alone, about 63% of the group’s revenue increase. That is more than double the legacy segment’s best annual dollar gain (+$14.9B in FY2022), although the two compositions have different bases.

• Productivity and Business Processes: Resilient Double-Digit Growth Productivity and Business Processes has grown 13–16% each year, with FY2026 (15.9%) its strongest year in the new window. It remains the largest segment at $140.0B. Its mix slipped 2.2 points only because Intelligent Cloud is growing faster, not because the segment is weakening.

• More Personal Computing: Plateau and First Contraction Growth in More Personal Computing slowed from 13.4% in FY2024 to 7.5% in FY2025, then turned to a 1.1% decline in FY2026. Its mix fell from 21.1% to 16.3%. The legacy series shows the segment has been cyclical, with contractions in FY2016–FY2017 and FY2023 followed by recoveries in FY2018 and FY2024. The FY2024 rebound was also helped by the gaming acquisition completed that year, so part of it was not organic.

• Legacy Composition: A Decade of Rebalancing Between FY2014 and FY2024, revenue grew 2.8x, a compound rate of about 10.9%. Intelligent Cloud compounded at about 17%, moving from the smallest segment (24.9% of revenue) to the largest (43.0%). It passed both other segments in FY2020, and it outgrew Productivity and Business Processes in eight of ten years. More Personal Computing’s share fell from 44.1% to 25.3%, while Productivity and Business Processes held near 32%. Total growth went through three phases:

  • Stagnation in FY2015–FY2017, including a 1.4% decline in FY2016.
  • Acceleration in FY2018–FY2022, at 13.6–18.0% a year.
  • A FY2023 slowdown to 6.9% driven by More Personal Computing (−8.7%), then a FY2024 rebound to 15.7%.

• Composition Effect: The Two Series Cannot Be Spliced The overlap years (FY2023 and FY2024) have identical totals but very different segment mixes. The new composition moves about $25B (FY2023) and $29B (FY2024) into Productivity and Business Processes. It draws mostly from Intelligent Cloud ($15.0B and $17.9B) and More Personal Computing ($9.9B and $11.2B). Segment-level comparisons across the two datasets are therefore indicative only.

• Structural Takeaway: Structurally, Microsoft has moved from device- and licence-led revenue toward cloud infrastructure and platforms. Intelligent Cloud gained 18.1 points of mix over the legacy decade and another 7.1 points in just three years under the new composition, so the shift is still under way. Intelligent Cloud now trails Productivity and Business Processes by only $2.2B, and it is likely to become the largest segment as early as FY2027. Even at 20% growth against 14% for Productivity and Business Processes, it would lead (about $165B versus $160B). If More Personal Computing stays flat, its mix would fall to roughly 14% on 15% total growth.

  The trend is changing in one notable way. Group growth is concentrating in a single segment while the other two diverge, with Productivity and Business Processes holding steady and More Personal Computing stalling. FY2026’s 29.7% is also well above the 20–25% range of the prior years. If Intelligent Cloud reverts to the low 20s, total growth would settle nearer 15% even with Productivity and Business Processes steady, so group momentum now depends heavily on that one segment sustaining its pace.

The table below combines all key Microsoft’s segment revenue metrics into a single view for the latest three fiscal years.

Back To Table Of Contents

Revenue breakdown by segment – new composition

For your information, Microsoft reorganized how it reports its segment revenue starting in fiscal 2025. However, only the revenue composition has changed while the business segments have remained the same. The legacy revenue composition is available here: legacy revenue composition.

The definitions of Microsoft’s segments are available here:

• Productivity and Business Processes
• Intelligent Cloud
• More Personal Computing

Back To Table Of Contents

Revenue mix by segment – new composition

For your information, Microsoft reorganized how it reports its segment revenue starting in fiscal 2025. However, only the revenue composition has changed while the business segments have remained the same. The legacy revenue composition is available here: legacy revenue composition.

The definitions of Microsoft’s segments are available here:

• Productivity and Business Processes
• Intelligent Cloud
• More Personal Computing

Back To Table Of Contents

Revenue growth by segment – new composition

For your information, Microsoft reorganized how it reports its segment revenue starting in fiscal 2025. However, only the revenue composition has changed while the business segments have remained the same. The legacy revenue composition is available here: legacy revenue composition.

The definitions of Microsoft’s segments are available here:

• Productivity and Business Processes
• Intelligent Cloud
• More Personal Computing

Back To Table Of Contents

Revenue breakdown by segment – legacy composition

For your information, Microsoft reorganized how it reports its segment revenue starting in fiscal 2025. However, only the revenue composition has changed while the business segments have remained the same. The new revenue composition is available here: new revenue composition.

The definitions of Microsoft’s segments are available here:

• Productivity and Business Processes
• Intelligent Cloud
• More Personal Computing

Back To Table Of Contents

Revenue mix by segment – legacy composition

For your information, Microsoft reorganized how it reports its segment revenue starting in fiscal 2025. However, only the revenue composition has changed while the business segments have remained the same. The new revenue composition is available here: new revenue composition.

The definitions of Microsoft’s segments are available here:

• Productivity and Business Processes
• Intelligent Cloud
• More Personal Computing

Back To Table Of Contents

Credits And References

1. All data presented in this article were obtained and referenced from Microsoft’s quarterly and annual reports published on the company’s investor relations: Microsoft investor relations.

2. Pexels Images.

Disclosure

We may use artificial intelligence (AI) tools to assist us in writing some of the text in this article. However, the data is directly obtained from original sources (usually the quarterly and annual reports) and meticulously cross-checked by our editors multiple times to ensure its accuracy and reliability.

If you find the information in this article helpful, please consider sharing it on social media. Additionally, providing a link back to this article from any website can help us create more content like this in the future.

Thank you for your support and engagement! Your involvement helps us continue to provide high-quality, reliable content.

Back To Table Of Contents