Salesforce forecast fiscal 2027 revenue below Wall Street expectations, indicating cautious enterprise spending on business software. The company is heavily investing in its artificial intelligence platform to drive demand.
Shares of the San Francisco-based company saw a decline in extended trading.
Salesforce projects annual revenue between $45.80 billion and $46.20 billion, with the midpoint slightly below estimates. This forecast reflects ongoing pressure on business software demand due to global economic uncertainty and companies prioritizing essential spending and cost-cutting.
Co-founder Marc Benioff aims to transform Salesforce into an AI-driven data and cloud platform, touting its agentic platform, Agentforce, as a key growth driver. The company also announced a $50 billion share repurchase program.
In the fourth quarter, Salesforce reported revenue of $11.20 billion, slightly exceeding estimates.