Significant Growth in Microsoft Cloud Revenue by 26% Despite Challenges in AI Sales

Microsoft’s stock experienced significant fluctuations following news that some AI-focused sales teams had failed to meet the company’s ambitious growth targets. This prompted a review of the situation and raised investor concerns about the company’s plans in this area. According to “The Information,” some teams working on the Azure Foundry platform and automated artificial intelligence failed to meet sales goals set for 2025, fueling speculation about the company’s future in the field of AI in the near future.

Microsoft 365 Price Increase in Mid-2026
Microsoft announced details of a plan to raise prices for Microsoft 365 products, to be implemented on July 1, 2026, for both business and government software packages, according to a report by “The Street.” The company explained that this price increase is linked to the addition of more than 1,100 new features, in addition to security improvements and built-in artificial intelligence capabilities.

The company indicated that small businesses and Frontline will see relatively larger increases compared to large enterprise categories, due to improved features and additions in the field of artificial intelligence.

Microsoft Cloud Revenues Show Strong Growth
Microsoft Cloud announced revenues of $49.1 billion in the first quarter of fiscal year 2026, a 26% increase compared to the previous year, according to a report by “The Street.” Total remaining performance obligations reached $392 billion, an increase of 51%, reflecting positive revenue expectations in the medium term, despite the challenges facing artificial intelligence sales in the short term.

When will Microsoft 365 prices increase?
The new prices will take effect on July 1, 2026, for both commercial and government programs. (اليوم السابع)