Microsoft’s stock faced significant downward pressure following a report from The Information suggesting the company’s newer artificial intelligence products are falling short of internal sales growth goals. The tech giant swiftly countered the narrative, issuing a firm denial to CNBC that it had lowered AI sales quotas for its teams. The focal point of the report was Microsoft’s “agents,” AI tools designed to automate complex, multi-step business tasks, which are part of the broader Azure enterprise platform known as Foundry.

According to the original publication, multiple Microsoft divisions allegedly scaled back sales growth targets for these specific AI offerings after a substantial majority of sales personnel failed to meet ambitious objectives in the fiscal year ending June 2024.

The Information indicated that in one key U.S. Azure cloud unit, less than twenty percent of sellers achieved a reported Foundry sales growth target of fifty percent. This characterization painted the adjustment as an unusual step for the software leader, hinting at potential headwinds in persuading enterprise clients to adopt premium-priced AI solutions.

The market reaction was immediate, with Microsoft shares dropping over two percent on the news, reflecting investor unease about the near-term monetization pace of the company’s massive AI investments. The conflicting accounts highlight the heightened scrutiny on whether explosive demand for generative AI will translate directly and swiftly into corporate revenue streams. Microsoft’s strong rebuttal underscores its commitment to the narrative of robust AI demand, setting the stage for continued close analysis of its upcoming financial disclosures and sales execution in this critical competitive arena.