Microsoft has reported significant progress in sales of its Copilot artificial intelligence add-on for business clients, following criticism over relatively low adoption rates in recent months. Judson Althoff, CEO of Microsoft's commercial business, stated in a town hall meeting that the company met its ambitious sales goals for the March quarter, which ended on Tuesday, and has set new targets for the June quarter, expressing confidence in achieving them [1].
In January, Microsoft disclosed that it had secured 15 million seats for Microsoft 365 Copilot, accounting for 3% of seats for the standard bundles. The Copilot product, priced at $30 per month, became widely available in 2023. Despite these numbers, analysts at UBS, who recommend buying Microsoft shares, had anticipated higher subscriber growth, describing Copilot adoption as nascent [1]. CEO Satya Nadella noted on an earnings call that the company had "multiples more enterprise chat users" beyond paid Copilot seats [1].
Microsoft's stock has declined 23% in the first quarter of 2026, reflecting investor concerns that generative AI models could intensify competition among software companies. The company has increased spending on data centers to support cloud customers such as OpenAI, as investors look for evidence that AI-enhanced products will drive revenue and profitability [1].
Following analyst feedback, Microsoft revamped its sales strategy to focus on landing paid Copilot seats and encouraging broader use of Copilot Chat. While analysts acknowledge that it is still early for the AI product, Microsoft remains confident in its trajectory, with Althoff and finance chief Amy Hood issuing bold goals for upcoming quarters [1].
CONCLUSION
Microsoft has achieved its sales targets for Copilot in the March quarter and is optimistic about meeting new goals for the June quarter. Despite a 23% stock decline and analyst concerns about slow adoption, the company is ramping up its AI and cloud investments, signaling a commitment to driving future growth through AI-enhanced products.