Microsoft instructions may include nutritional volume discounts: analyst

Microsoft He said last week that she is planning to stop providing discounts on institutions’ purchases for subscriptions in Microsoft Productivity programs and other cloud applications.

Since the announcement, analysts have published estimates about how much customers will end. But for investors trying to know what everything means for Microsoft’s financial data, UBS analysts said that the change has already been calculated in instructions.

“In our opinion, it is safe to assume that the effect of changing pricing” was included in Microsoft’s expectations, analysts wrote in a late Tuesday report. They have a buying classification on stocks.

Microsoft’s disclosure came on August 12, two weeks after the software company, which is the fourth -quarter profit report, I issued expectations This included revenue growth on an annual basis for the new fiscal year. The shares increased by 4 % after the report.

Microsoft said in it Blog post Announcing changing pricing, “This update depends on the already consistent pricing model such as Azure and reflects our continuous commitment to more transparency and alignment through all purchase channels.”

The change applies to companies that have a sufficient number of employees to obtain price levels known as A, B, C and D. It comes into effect when institutions register for new services or renewing current agreements, starting from November 1.

“This procedure allows us to provide more consistent and transparent prices and enable clear and enlightened decisions to customers and partners,” Microsoft spokesman told CNBC in an email.

Customers will see price increase from 6 % to 12 %. UBS analysts have written that the partners value a low effect of up to 3 % and a 14 % increase.

The growth of commercial seats Microsoft 365, a measure of the number of licenses that customers buy for their workers, was less than 10 % since 2023. Microsoft aims to achieve more revenues per seat by selling Copilot additions and transporting some users to more expensive plans.

The expansion of this part of the work is crucial. Most of Microsoft’s operating profit, which cost 128.5 billion dollars in 2025, came from the Unit for Operations and Commercial Operations, and about 73 % of revenues in this sector were Microsoft 365 commercial products and cloud services.

Adam Mansfield, practice at Upperedge, said that some customers may agree to pay more Microsoft to continue using applications instead of moving to alternative services. Mansfield said they may also reduce their obligations to Microsoft in other regions, such as Azure Cloud Infrastructure.

One of the ways that companies can pay for low prices with the disappearance of discounts by purchasing through cloud sellers instead of going directly, said Nathan Taylor, Sourcepass’s Senior Vice President, an IT provider that meets small companies.

Taylor said that Solsipas has not yet received many customers as a result of the change of Microsoft yet.

“It takes some time to publish this information on the industry as a whole,” he said.

Microsoft shares increased by 20 % this year, while the Nasdaq Stock Exchange has gained about 10 %.

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