Salesforce revenue forecast disappoints amid AI disruption fears

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May 27, 2026 4:08 PM EDT

The logo for Salesforce is displayed at TIME's "A Year in TIME" event in New York City, U.S., December 10, 2025. REUTERS/Kylie Cooper

By Juby Babu

May 27 (Reuters) - ‌Salesforce forecast second-quarter ​revenue ​below Wall Street estimates on Wednesday, as concerns over AI-driven disruption to traditional software demand overshadowed its stronger-than-expected performance ‌in the first quarter.

Shares of the business software provider were ⁠marginally down in volatile extended trading. They have declined nearly 33% so far ‌this year, after falling more ‌than 20% in 2025.

Like its peers, Salesforce is also contending with growing investor concerns that rapidly evolving AI tools could pull enterprise ​clients away from traditional software by taking over tasks once done by their products.

Advanced coding tools by Anthropic and OpenAI have ⁠contributed to a recent selloff in software stocks, ushering in what Wall Street is calling ​a "SaaSpocalypse" — a term reflecting the gloom around software-as-a-service companies.

Salesforce expects second-quarter revenue to be between $11.27 billion and $11.35 billion, below ​analysts' average estimate of $11.36 billion, according ‌to data compiled by LSEG.

"The next few quarters will be critical to Salesforce, both to show the value ⁠its core customers are getting from per-seat licenses and its Agentforce customers are getting from AI," said Rebecca Wettemann, CEO of industry analyst firm Valoir.

Salesforce ⁠is trying to reinvent itself as an AI-agent company through its Agentforce autonomous agent ​platform — still a small business.

It posted an adjusted per-share profit of $3.88 during the first quarter, beating the estimate of $3.12.

Salesforce reported revenue of $11.13 billion for the quarter ‌ended April 30, surpassing the estimate of $11.05 billion, supported by strong adoption of its AI-powered business software.

The company ‌secured 98 new deals with over $1 million in annual contract value in ⁠the quarter, CEO Marc Benioff ‌said on a post-earnings ​call.

Quarterly subscription and support revenue grew 14%, also topping expectations.

(Reporting by Juby Babu in Mexico City; Editing by ‌Shilpi Majumdar)


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