Salesforce CEO Marc Benioff will be attending the annual general meeting of the 55th World Economic Forum, held in Davos, Switzerland on January 23, 2025.
Halil Sagirkaya | Anadoru | Getty Images
The bad year has gotten worse Salesforce.
Following the disappointing earnings forecast late Wednesday in the quarterly revenue report, Salesforce stock fell almost 5%, resulting in a 27% decline from 2025. This is the worst performance on a large scale technology.
Revenue rose 10% in the second quarter from a year ago, earning double-digit growth for the first time since early 2024. Revenue of $10.24 billion was estimated by average analysts at $10.14 billion, and earnings per share exceeded expectations.
However, for the third quarter, Salesforce said revenues would range from $10.24 billion to $10.29 billion, with analysts expecting $10.29 billion.
Salesforce regularly promotes investments in advances in artificial intelligence and its software, or as SaaS, but it has not been lifted by the AI boom, just like many high-tech peers, particularly those focusing on infrastructure.
There are also concerns on Wall Street that AI will eat up much of the software sector.
“The investor community is venting anxiety about the future of SaaS, but from now on from Salesforce, it’s a massive, impressive, but not enough to reconstruct the story,” an analyst at KeyBanc Capital Markets wrote in a report Wednesday. Analysts have a purchase valuation of stocks.
Salesforce is dealing with the marketing and commerce product sales challenge, Robin Washington, the company’s president, CEO and financial officer, said in a conference call with analysts.
In its revenue release, Salesforce said it could close over 12,500 AgentForce’s total transaction, allowing it to automate customer service questions. This includes 6,000 paid transactions. The company said more than 40% of AgentForce and its data cloud bookings came from existing customers.
CEO Marc Benioff maintains his optimism, downplaying concerns about AI threats to software and calling analysts about revenues “we are looking at one of the biggest transformations in this space.”
“To hear some of this nonsense on social media and elsewhere, people say the craziest thing, but it’s not based on the truth of the customer,” Benioff said.
Salesforce maintains its full-year revenue outlook, but it now believes it is profitable. The company aims to earn between $41.1 billion and $41.3 billion with adjusted revenue per share, between $11.33 and $11.37.
