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Microsoft has reorganized some of its business units and updated its revenue forecasts for those units to reflect the changes. The company announced that it will merge revenue from Microsoft 365 business components into the Productivity and Business Processes unit and move revenue from the Copilot Pro artificial intelligence productivity tool to the More Personal Computing unit, which is included in the search and news advertising business.

Other changes include moving Nuance Enterprise revenue from the Intelligent Cloud unit to the Productivity and Business Processes unit and moving to combined reporting of Windows and devices revenue.

Microsoft also updated its outlook for the first quarter of fiscal 2025 for each of its reorganized divisions. The company now expects revenue for the Productivity and Business Processes division to be between $27.75 billion and $28.05 billion in the first quarter of fiscal 2025, compared with a previous forecast of $20.3 billion to $20.6 billion. Revenue for the Intelligent Cloud division is now expected to be between $23.8 billion and $24.1 billion, compared with a previous forecast of $28.6 billion to $28.9 billion. Revenue for the More Personal Computing division is now expected to be between $12.25 billion and $12.65 billion, compared with a previous forecast of $14.9 billion to $15.3 billion. (The Wall Street Journal)