Microsoft to feature new earnings structure with 1Q 2016 report

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Microsoft’s 1Q16 earnings report is just around the corner (actually tomorrow, October 22), and we’ll get our first glimpse at the performance of the new Microsoft following their restructuring on September 29, 2015.
In case you forgot, Microsoft simplified their organizational structure from six “reportable segments” down to three. Simplified, the new structure breaks out as follows.
Productivity and Business Processes segment, made up of:

  • Office Commercial (including services such as Office 365 Commercial, Exchange, SharePoint, and Skype for Business)
  • Office Consumer (including Office 365 Consumer,, OneDrive, and Skype)
  • Microsoft Dynamics

Intelligent Cloud segment, comprising:

  • Server products and services (including Windows Server, SQL Server, Visual Studio, System Center, and Azure)
  • Enterprise Services (including Premier Support Services and Microsoft Consulting Services)

More Personal Computing segment, which includes:

  • Windows (including Windows 10, Windows 10 Mobile, Windows Embedded, MSN, and Windows Phone)
  • Devices (including Surface, smartphones, and PC accessories)
  • Gaming
  • Search advertising revenues

As GeekWire reports, Microsoft published financials that reflect what the company would have looked like if the new structure had previously been in place:

How Microsoft's past financials would look under the new reporting structure.
How Microsoft’s past financials would look under the new reporting structure.

This compares to Microsoft’s old structure:

How Microsoft's financials actually looked under the old structure.
How Microsoft’s financials actually looked under the old structure.

As GeekWire points out, the level of detail that Microsoft provides going forward will dictate the ability to see just how individual products, such as the Surface and Lumia lines, performed. These are important metrics for determining just how well Microsoft’s “mobile-first, cloud-first” strategy is playing out, and we’ll be digging into Microsoft’s earnings report with some vigor.