Microsoft Stock Falls After Software Giant Reportedly Revises AI Sales Targets As Growth Falls Short Of Expectation
Synopsis
According to The Information report, less than 20% of employees in the Azure cloud division reached their projected Foundry sales growth, prompting a revision of annual targets.
- The tech giant implemented new benchmarks in July, setting a roughly 25% growth goal for AI products for fiscal 2026.
- Microsoft’s stock traded over 2% lower on Wednesday, after the morning bell.
Microsoft Corp. (MSFT) has reportedly scaled back expectations for its artificial intelligence offerings after numerous sales staff fell short of targets in the fiscal year ending June.
According to The Information report, less than 20% of employees in the Azure cloud division reached their projected Foundry sales growth, prompting a revision of annual targets.
Adjusting Quotas
The tech giant implemented new benchmarks in July, setting a roughly 25% growth goal for AI products this fiscal year 2026.
According to the report, such adjustments for specific product lines are uncommon at Microsoft, highlighting the challenges the company faces in expanding AI sales. Following the report, Microsoft’s stock traded over 2% lower on Wednesday, after the morning bell.
Get updates to this developing story directly on Stocktwits.<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.