Salesforce Shares Fall on Weak Annual Revenue Forecast
Salesforce shares fell after forecasting annual revenue below estimates. The firm announced a $50 billion buyback while pivoting toward its new AI platform.
Salesforce, Inc.[Symbol:{\"assets\":{\"symbol\":\"CRM\"}}] has issued a revenue forecast for fiscal 2027 that came in below Wall Street expectations, signaling a slowdown in enterprise software demand. The company, which is based in the United States[Country:{\"assets\":{\"country\":\"US\"}}], expects annual revenue to range between $45.80 billion and $46.20 billion. The midpoint of this projection, $46.00 billion, is slightly lower than the $46.06 billion estimate compiled by LSEG.
Following the report on Wednesday, shares of the San Francisco-based firm fell 4% in extended trading. The outlook suggests that demand for business software remains under pressure due to global economic uncertainty, which has led many companies to scale back their technology budgets and prioritize essential spending and cost-efficiency.
In response to the shifting market, co-founder Marc Benioff is working to transform the company into an AI-driven data and cloud platform. Salesforce has highlighted its agentic platform, Agentforce, as a key driver for future growth. To support its stock, the company also announced a $50 billion share repurchase program.
For the fourth quarter, the company reported revenue of $11.20 billion, marginally beating the $11.18 billion estimate. The financial results were reported with contributions from Bengaluru, India[Country:{\"assets\":{\"country\":\"IN\"}}], and Mexico City, Mexico[Country:{\"assets\":{\"country\":\"MX\"}}].
