The megacap denied the report, claiming the story shows a “lack of understanding of the way a sales organization works and is compensated.”
Dec 03, 2025, 02:18pm EST Microsoft shares fell by more than 1.7% on Wednesday following a report the tech giant had lowered growth targets for AI product sales, though the firm has denied the report, claiming it shows a “lack of understanding.
” The megacap denied the report, claiming the story shows a “lack of understanding of the way a sales organization works and is compensated.”Shares of Microsoft declined by more than 1.7% to around $481.64 as of just before 2:15 p.m. EST on Wednesday afternoon, paring back earlier losses, which were as much as 3% before the company issued its denial. Less than one-fifth of salespeople in one U.S.-based Azure unit, Microsoft’s cloud computing business, met a sales growth target of 50% for a tool used to build AI applications, and in July, Microsoft lowered the target to 25% growth for the current fiscal year, The InformationReuters : “Aggregate sales quotas for AI products have not been lowered, as we informed prior to publication.” The company reportedly said the report “inaccurately combines the concepts of growth and sales quotas,” which Microsoft claimed shows a “lack of understanding of the way a sales organization works and is compensated.”$3.5 trillion. That’s Microsoft’s market capitalization as of Wednesday, ranking behind Google parent Alphabet , Apple and Nvidia , respectively. Microsoft the second company ever to be valued at over $4 trillion earlier this year, largely driven by the performance of its Azure business, though shares have pared back earlier gains and are now up 15% on the year.
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