Microsoft Stock Falls After Software Giant Reportedly Revises AI Sales Targets As Growth Falls Short Of Expectation

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. 

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