Microsoft Denies Slashing AI Sales Target Amid Quota Reduction Claims- Report

• The Information earlier reported that less than 20% of employees in the Azure cloud division reached their projected Foundry sales growth.
• Microsoft’s stock traded over 2% lower on Wednesday, after the morning bell. 
• In the first quarter of fiscal 2026, Microsoft said its Azure and cloud services revenue climbed 40% year-on-year.

Microsoft Corp. (MSFT) on Wednesday denied a report claiming it scaled back expectations for its artificial intelligence offerings after numerous sales staff fell short of targets in the fiscal year ending June. 

According to a CNBC report, a Microsoft spokesperson said the company has not reduced sales goals for its staff. 

Adjusting Quotas

Earlier on Wednesday, The Information reported that less than 20% of employees in the Azure cloud division reached their projected Foundry sales growth, prompting a revision of annual targets.

The report highlighted that the tech giant implemented new benchmarks in July, setting a roughly 25% growth goal for AI products this fiscal year 2026. Following the report, Microsoft’s stock traded over 2% lower on Wednesday, after the morning bell. 

However, on Stocktwits, retail sentiment around the stock jumped to ‘bullish’ from ‘bearish’ territory the previous day. Message volume shifted to ‘normal’ from ‘low’ levels in 24 hours. 

Microsoft’s Ongoing AI Bet

The move is underscored by broader skepticism within the tech sector around whether enterprise AI tools can live up to their promise. 

Microsoft, however, has not abandoned its AI ambitions. Earlier this year, the company disclosed a record $35 billion capital expenditure to build out its AI infrastructure.

In the first quarter of fiscal 2026, Microsoft said its Azure and cloud services revenue climbed 40% year-on-year (YoY) on a reported basis and 39% on a constant-currency basis. Intelligent Cloud revenue, which includes Azure, rose 28% YoY to $30.9 billion, and overall Microsoft Cloud revenue was up 26% YoY at $49.1 billion.

MSFT stock has gained 14% year-to-date. 

Also See: Why Did Capricor Therapeutics Stock Skyrocket Today?

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