Microsoft breaks out Azure earnings separately for the first time

Microsoft has started reporting Azure's financial results on their own instead of folding them into its broader 'intelligent cloud' segment, adjusting its financial reporting practices accordingly.

Why it matters: Investors have struggled to gauge how much of Big Tech's AI capital spending is converting into revenue; isolating Azure's numbers gives a cleaner view into whether Microsoft's massive AI infrastructure bet is paying off, right as rivals face similar questions about spending sustainability.