{"id":132061,"date":"2025-09-04T11:11:07","date_gmt":"2025-09-04T11:11:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/132061\/"},"modified":"2025-09-04T11:11:07","modified_gmt":"2025-09-04T11:11:07","slug":"salesforces-weak-quarterly-revenue-forecast-signals-lagging-ai-monetization","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/132061\/","title":{"rendered":"Salesforce’s weak quarterly revenue forecast signals lagging AI monetization"},"content":{"rendered":"\n

(Reuters) -Salesforce forecast third-quarter revenue below Wall Street estimates on Wednesday, signaling lagging monetization for its highly-touted artificial intelligence<\/a> agent platform as clients dial back spending due to macroeconomic uncertainty.<\/p>\n

The cloud software provider also announced a $20 billion increase to its existing share buyback program, but that was unable to allay investors’ concerns, sending Salesforce’s shares down over 5% in extended trading.<\/p>\n

Since OpenAI<\/a>‘s ChatGPT launched in 2022, Salesforce has adopted artificial intelligence on a wide scale, integrating it into its various cloud services and creating an AI agent platform called Agentforce to automate tasks in the hopes of streamlining operations and boosting margins.<\/p>\n

Shares fell almost 7% in premarket trading.<\/p>\n

Investors are on the heels of cloud firms to show returns on the billions poured into AI, while an uncertain macro environment and volatile customer spending weigh on growth prospects.<\/p>\n

“Investors may feel a sense of frustration, especially as they contemplate the timeline for adequate returns on AI investments, said Melissa Otto, head of research at S&P Global’s Visible Alpha.<\/p>\n

The company has returned to its strategy of acquisitions to expand its existing cloud offerings, potentially inviting activist investor scrutiny.<\/p>\n

“As Salesforce brings more acquisitions into the fold, it will be able to offer even more intelligent agentic capabilities to customers,” said Rebecca Wettemann, CEO of industry analyst firm Valoir.<\/p>\n

CEO Marc Benioff said last week that Salesforce has cut 4,000 jobs in customer support due to AI, after earlier saying that the technology accounts for about 30% to 50% of the company’s work.<\/p>\n

For the third quarter, Salesforce sees revenue between $10.24 billion and $10.29 billion, with the midpoint coming below analysts’ average estimate of $10.29 billion, according to data compiled by LSEG.<\/p>\n

On an adjusted basis, Salesforce expects earnings per share between $2.84 and $2.86, the midpoint of which is in line with analysts’ estimates.<\/p>\n

Second-quarter revenue was $10.24 billion, beating expectations of $10.14 billion.<\/p>\n

(Reporting by Juby Babu in Mexico City and Zaheer Kachwala in Bengaluru; Editing by Alan Barona)<\/p>\n","protected":false},"excerpt":{"rendered":"(Reuters) -Salesforce forecast third-quarter revenue below Wall Street estimates on Wednesday, signaling lagging monetization for its highly-touted artificial…\n","protected":false},"author":2,"featured_media":132062,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[35875,181,28,11194,10446,83419],"class_list":{"0":"post-132061","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-ai-agent-platform","9":"tag-artificial-intelligence","10":"tag-business","11":"tag-cloud-software","12":"tag-salesforce","13":"tag-wall-street-estimates"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/132061","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=132061"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/132061\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/132062"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=132061"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=132061"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=132061"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}