Salesforce Revenue Forecast Dips Amid AI Uncertainty

Salesforce Forecasts Lower Revenue Amid AI Concerns

Salesforce, a leading business software provider, on Wednesday forecast second-quarter revenue below Wall Street estimates, signaling investor concerns regarding the impact of artificial intelligence (AI) on traditional software demand. This projection follows a stronger-than-expected first-quarter performance, where the company exceeded revenue and profit estimates.

The company anticipates second-quarter revenue to range between $11.27 billion and $11.35 billion, falling short of analysts' average estimate of $11.36 billion, according to LSEG data. This outlook contributed to a marginal decline in Salesforce shares during extended trading, with the stock having decreased nearly 33% year-to-date after a more than 20% drop in 2025.

Salesforce reported first-quarter revenue of $11.13 billion, surpassing the $11.05 billion estimate, driven by the adoption of its AI-powered business software. Adjusted earnings per share for the quarter reached $3.88, exceeding the $3.12 estimate. The company secured 98 new deals with an annual contract value exceeding $1 million during the quarter, and subscription and support revenue increased by 14%.