Salesforce projected fiscal 2027 revenue below Wall Street expectations, citing sluggish enterprise software spending as the company invests heavily in its artificial intelligence platform.
Shares of the San Francisco-based company experienced a nearly 4% decline in extended trading, following a year-to-date loss exceeding 28%.
The company anticipates annual revenue between $45.80 billion and $46.20 billion, with the midpoint slightly under the estimated $46.06 billion.
This forecast highlights ongoing pressure on business software demand due to global economic uncertainty, prompting companies to reduce tech budgets and prioritize essential spending.
Investors express concern that startup innovations in AI could disrupt traditional software operations, despite Salesforce's significant investment in machine learning.
Salesforce did, however, raise its 2030 revenue forecast to $63 billion, up from over $60 billion, identifying agentic AI as a key growth driver. A $50 billion share repurchase program was also announced.
For the fourth quarter, Salesforce reported revenue of $11.20 billion, marginally exceeding the estimated $11.18 billion.