Microsoft’s Corporate Shake-Up Hands Ryan Roslansky the Keys to a Billion Users

Microsoft reorganizes to embed AI across its productivity suite, merging LinkedIn, Office, and Teams under Ryan Roslansky, as Wall Street cheers the shift toward software and services.

The software giant is tearing down internal walls in a bid to make artificial intelligence the connective tissue across its entire productivity empire. A sweeping reorganization has placed Ryan Roslansky at the helm of a newly created Work Experiences Group, giving him command over LinkedIn, Office, and Teams — tools used daily by more than one billion people. The move signals that Chief Executive Satya Nadella is doubling down on software and services while hardware takes a back seat.

The restructuring, which took effect in April, follows the departure of Rajesh Jha after 35 years at the company. Jha had built the devices and experiences division, but Microsoft has now dismantled that unit. Roslansky, who already oversaw LinkedIn and Office, now also has Teams reporting directly to him. Daniel Shapero has stepped in as the new chief of LinkedIn, which recently crossed the five-billion-dollar mark in quarterly revenue for the first time.

Wall Street has given the shake-up a warm reception. Tigress Financial analyst Ivan Feinseth raised his price target on Microsoft shares to $680, implying a 61 percent upside from current levels. Feinseth praised the company’s integrated offering spanning cloud, security, and data, and argued that the heavy capital spending on AI data centers will eventually improve returns on invested capital. Of the 58 analysts covering the stock, 55 rate it a buy, with a consensus target of roughly $576.

The strategic overhaul extends beyond internal structure. Microsoft and OpenAI renegotiated their partnership late last month, scrapping the exclusivity clause that locked OpenAI’s products to the Azure cloud platform. OpenAI can now distribute its technology through other providers, while Microsoft has moved away from a revenue-sharing model to a capped arrangement running through 2030. The change hit the books immediately: commercial bookings fell 46 percent on a currency-adjusted basis in the fiscal third quarter as OpenAI’s fixed commitments dropped.

The core business absorbed that blow with ease. Revenue climbed 18 percent to $82.9 billion in the quarter, with Azure posting 40 percent growth. AI services are now generating an annualized revenue run rate of $37 billion. The company’s paid Copilot user base has surpassed 20 million. Yet the massive infrastructure buildout is taking a toll on cash flow, which slipped to $15.8 billion. Management is planning capital expenditures of $190 billion for calendar 2026.

Cost discipline is also surfacing in unexpected places. Xbox chief Asha Sharma has scrapped the Copilot feature for gaming consoles, a move the market interpreted as a sensible pruning of non-core projects in favor of profitable AI initiatives.

Microsoft’s shares have recovered somewhat, gaining about 11 percent over the past month to trade near €358. The stock remains down by a double-digit percentage since the start of the year. Azure has now grown by at least 30 percent for 11 consecutive quarters, providing the financial foundation for the AI buildout. The question now is whether Roslansky’s unified command of Teams, Office, and Copilot can accelerate the monetization of those investments and justify the $190 billion price tag.