Salesforce forecast disappoints, shares drop 5%

Salesforce shares fell 5% in after-hours trading even though the company posted solid results for the recent quarter. Investors focused on its softer revenue outlook for next year.

The company reported revenue of $11.2 billion, up 12% from a year ago and slightly above expectations. Adjusted earnings reached $3.81 per share, easily beating estimates of $3.04. Profit rose to $1.94 billion from $1.71 billion last year.

However, Salesforce expects revenue of up to $46.2 billion next year, which came in a bit below Wall Street forecasts. The company authorized $50 billion in new share buybacks after the stock dropped 28% this year.

Salesforce said its Agentforce artificial intelligence tools now generate more than $800 million in annual revenue, showing steady demand for AI-driven services.

Despite consistent growth, investors remain cautious, fearing that AI rendering software could make traditional software companies obsolete.