Microsoft has restructured some of its business units and updated their revenue expectations to reflect the changes. The company announced that it will merge the revenue from Microsoft 365 Business Components into the Productivity and Business Processes department; Transfer the revenue from Copilot Pro artificial intelligence productivity tools to the More Personal Computing department, which is included in the search and news advertising business.
Other changes include transferring Nuance Enterprise revenue from the Intelligent Cloud department to the Productivity and Business Processes department, and changing to report Windows and device revenue together.
Microsoft also updated the performance outlook for the first quarter of fiscal year 2025 for each department after the restructuring. The company currently expects the revenue of the Productivity and Business Processes department for the first quarter of fiscal year 2025 to be between $27.75 billion and $28.05 billion, compared to the previous expectation of $20.3-20.6 billion. It is expected that the revenue of the Intelligent Cloud department will be between $23.8 billion and $24.1 billion, compared to the previous expectation of $28.6-28.9 billion. The revenue of the More Personal Computing department is currently expected to be between $12.25 billion and $1.265 billion, compared to the previous expectation of $14.9-15.3 billion. (Wall Street Journal)