Technology giant Microsoft recently denied reports about its AI software business lowering growth targets, despite previous reports indicating that some sales teams failed to meet their goals in the previous fiscal year.

Microsoft

According to a report by The Information, due to multiple sales teams failing to meet their targets in the previous fiscal year, Microsoft reduced its growth expectations for its AI business. The report cited specific cases, stating that less than 20% of salespeople in one department at Microsoft met 50% of the growth target for Azure Foundry, the platform Microsoft uses to build AI agents. Additionally, the initial target for another department was cut from 100% to 50%.

In response to these reports, Microsoft clearly stated to CNBC that the company had not changed its overall growth targets. Microsoft pointed out that the report by The Information confused the concepts of "growth" and "quota," implying that adjustments to individual or team quotas do not mean a change in the company's strategic growth targets at the corporate level.

Despite Microsoft's clarification, the report still caused concern among investors. Microsoft's stock price fell by more than 2% on the same day, showing market doubts about the momentum of development in the AI industry and its sales execution capabilities.