Microsoft pushes back on report claiming it cut AI sales targets

Microsoft is disputing a report that it dialed back growth targets for its AI software business after many sales teams fell short last fiscal year. The Information reported that fewer than 20 percent of salespeople in one US unit hit a 50 percent growth target for Azure Foundry, the company's platform for building AI agents. In another group, the original 100 percent goal was reportedly reduced to 50 percent.

Microsoft told CNBC that it has not changed its overall targets and claimed The Information mixed up growth with quotas. Even so, Microsoft's stock dropped more than two percent at times, suggesting investors are taking concerns about the sector's momentum seriously.