Microsoft Denies Cutting AI Software Sales Targets — Official Statement (Dec 3, 2025)

Microsoft Denies Cutting AI Software Sales Targets — Dec 3, 2025

On 3 December 2025, Microsoft firmly denied reports claiming that the company had reduced its sales growth targets for its AI software division. The report, originally published by The Information, suggested that certain Microsoft units — particularly within Azure — had lowered sales quotas for specific AI products after many sales teams missed their targets for the fiscal year ending June 2025.

According to the report, the quota adjustments were described as unusual for Microsoft and triggered a 2–3% decline in the company’s share price, as investors feared it signaled weakening demand for enterprise AI tools.

Microsoft responded quickly with an official statement. The company said the report “inaccurately combines the concepts of growth and sales quotas,” adding that it reflected “a lack of understanding of how a sales organization works and is compensated.” Microsoft further clarified that “aggregate sales quotas for AI products have not been lowered,” emphasizing that its overall targets remain unchanged.

Following Microsoft’s denial, the company’s shares recovered partially as investor concerns eased.

This clarification is important for maintaining confidence in enterprise AI adoption. The initial report had raised fresh doubts about whether businesses were fully ready to scale AI solutions beyond pilot programs — a trend that analysts say has slowed real-world deployment across the industry.

For investors and the broader technology market, Microsoft’s statement signals that its long-term AI strategy remains fully intact. Despite slower-than-expected enterprise adoption, the company appears confident that demand for AI software and infrastructure will continue growing.

In summary: Microsoft has officially dismissed rumors about cutting AI-software sales targets. No overall quota reductions were made, and the market’s initial reaction may have been premature. The company continues moving forward with its long-term AI ambitions.