Salesforce forecasts annual revenue below estimates, shares fall

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February 25, 2026 4:07 PM EST

FILE PHOTO: Signage for Salesforce is displayed at National Retail Federation (NRF) 2026: Retail's Big Show, in New York City, U.S., January 12, 2026. REUTERS/Kylie Cooper/File Photo

By Juby Babu

Feb 25 (Reuters) - ‌Salesforce forecast ​fiscal 2027 ​revenue below Wall Street expectations on Wednesday, signaling sluggish spending on enterprise business software as it invests heavily ‌in its artificial intelligence platform to drive up demand.

Shares ⁠of the San Francisco-based company fell more than 5% in extended trading, having ‌lost over 28% this year.

It ‌expects annual revenue in the range of $45.80 billion to $46.20 billion, with the midpoint coming in slightly below an estimate of $46.06 billion, ​according to data compiled by LSEG.

The forecast shows that demand for business software has remained under pressure from global economic ⁠uncertainty as companies pare back tech budgets, choosing to focus on essential spending and cost-cutting.

As ​Salesforce pours billions into machine learning, investors are worried that the development of new technology from startups could ​disrupt traditional software operations.

"Against the backdrop ‌of concerns about AI eating software-as-a-service, Salesforce needs to show it is continuing to translate early AI ⁠traction into broader enterprise adoption," Rebecca Wettemann, CEO of industry analyst firm Valoir, said.

To solidify its market position, Salesforce must show how customers are ⁠moving AI agents from pilots to production at scale, Wettemann added.

The cloud software ​provider raised its 2030 revenue forecast to $63 billion, up from its October projection of more than $60 billion, citing agentic AI as a catalyst for growth.

It also ‌announced a $50 billion share repurchase program.

Salesforce sees first-quarter revenue in the range of $11.03 billion to $11.08 billion, ‌while analysts expect $10.99 billion.

The company reported revenue of $11.20 billion for the fourth ⁠quarter ended January 31, coming ‌in slightly ahead ​of an estimate of $11.18 billion.

(Reporting by Zaheer Kachwala in Bengaluru and Juby Babu in Mexico City; Editing by ‌Alan Barona)


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