Microsoft guidance probably includes gutting volume discounts: analyst

Microsoft Last week, Microsoft 365 efficiency software subscriptions and other cloud applications are planning to stop providing discounts on corporate purchases, he said.

Since the announcement, analysts have published estimates about how much more customers will pay. However, for those who try to understand what Microsoft means for finance for investors, the analysts in UBS said that the change has already entered the guidance.

In a report late on Tuesday, analysts, “In our opinion, it is safe to assume that the impact of the pricing change was safe,” Microsoft’s estimation. There is a degree of purchasing on the stock.

Microsoft did not respond to the request for comment.

Microsoft’s statement arrived two weeks after the software company on August 12, the fourth quarter earning report, the fourth quarter earning report, which includes an annual two -digit income increase for the new financial year. After the report, stocks increased by 4%.

Microsoft said Blog post “This update is based on the consistent pricing model for services such as Azure, and reflects our commitment to more transparency and harmony in all purchasing channels.”

The change applies to companies with sufficient employees to convert them into price levels known as A, B, C and D. When organizations register for new services or renew the existing agreements as of November 1, they enter into force.

Jay Cuthrell, Microsoft Partner Nexustek product chef, said that customers will see 6% to 12% price increases. UBS analysts estimate a 3% lower and 14% effect as partners.

Microsoft 365 commercial seat growth, which is the measurement of the number of licenses that customers purchased for workers, has been below 10% since 2023. Microsoft aims to earn more income per seat by selling Copilot plug -ins and moving some users to more expensive plans.

It is very important to expand this part of the work. Most of Microsoft’s 128.5 billion dollars of financial 2025 operating profit came from the unit of productivity and business processes, and approximately 73% of the revenue in this segment are from Microsoft 365 commercial product and cloud services.

Adam Mansfield, who is the leader in the consulting firm Upperedge, said that some customers could accept Microsoft more payment to Microsoft to continue to use applications instead of switching to alternative services. Mansfield can also reduce their commitments to Microsoft in other areas such as Azure Cloud infrastructure.

Nathan Taylor, a Sourcepass Vice President of Sourcepass, a CT Service Provider that appeals to small businesses, said that a way to pay potentially lower prices with the disappearance of discounts, he said that it is to buy cloud sellers instead of going directly.

Taylor said that Sourcepass has not yet remained likely to the change of Microsoft.

“It takes some time for this information to spread to the sector,” he said.

Microsoft shares increased by 20% this year, while Nasdaq won about 10%.

WRISTWATCH: Microsoft’s software business has a tail wind in AI, says Melius Ben Reitzes