Salesforce's AI Investments Fail to Impress as Q3 Revenue Forecast Falls Short
25 Sources
[1]
Salesforce's Struggling Stock Needs Earnings to Show AI Progress
After months of pain, Salesforce Inc. investors will be scrutinizing the software maker's upcoming earnings for signs it will be a winner in the artificial intelligence boom -- or one of its most high-profile victims. Salesforce shares are down 24% this year, putting them among the 30
[2]
Salesforce shares drop as weak revenue forecast signals delayed AI returns
Sept 4 (Reuters) - Salesforce (CRM.N), opens new tab shares dropped nearly 7% before the bell on Thursday, after the cloud software provider's weak third-quarter revenue forecast hinted at delayed returns from its AI investments. Rising investor bets on AI-driven cloud companies are pressuring
[3]
Salesforce's weak quarterly revenue forecast signals lagging AI monetization
Sept 3 (Reuters) - Salesforce (CRM.N), opens new tab forecast third-quarter revenue below Wall Street estimates on Wednesday, signaling lagging monetization for its highly-touted artificial intelligence agent platform as clients dial back spending due to macroeconomic uncertainty. The cloud
[4]
Salesforce shares drop as weak revenue view signals delayed AI returns
Sept 4 (Reuters) - Salesforce (CRM.N), opens new tab shares dropped nearly 8% on Thursday, after the cloud software provider's soft third-quarter revenue forecast hinted at delayed returns from its AI investments. Rising investor bets on AI-driven cloud companies are pressuring them to deliver
[5]
Salesforce forecasts weak current-quarter revenue, shares fall
Sept 3 (Reuters) - Business software provider Salesforce (CRM.N), opens new tab forecast third-quarter revenue below Wall Street estimates on Wednesday, as clients dial back spending on its enterprise cloud products due to macroeconomic uncertainty. The cloud software provider also announced a $20
[6]
Salesforce CEO calls guidance 'appropriately conservative' as stock declines after earnings
In a Wednesday interview with CNBC's Jim Cramer, Salesforce CEO Marc Benioff defended the guidance his company issued -- even as the the figures disappointed Wall Street. "Our results are absolutely fantastic and our guidance is also, you know, is always appropriately conservative," Benioff
[7]
5 Things to Know About Why Salesforce Stock is Cratering (CRM)
Earlier this week, CEO Marc Benioff said that Salesforce had cut more than 4,000 customer service roles. Salesforce stock was down almost 8% this morning after a disappointing earnings report last night. The company shared third quarter revenue forecast that came in below expectations and
[8]
Salesforce beats expectations but its stock falls on weak guidance and fears over AI - SiliconANGLE
Salesforce beats expectations but its stock falls on weak guidance and fears over AI Salesforce Inc. racked up a solid earnings and revenue beat as it delivered its second-quarter financial results today, showing that it's making progress in its transition to an agentic artificial intelligence
[9]
Salesforce's weak quarterly revenue forecast signals lagging AI monetization - The Economic Times
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.Salesforce forecast third-quarter revenue below Wall Street estimates on Wednesday,
[10]
Salesforce shares drop as weak revenue view signals delayed AI returns - The Economic Times
Rising investor bets on AI-driven cloud companies are pressuring them to deliver hefty returns on their billion-dollar investments into the breakthrough technology, even as economic uncertainty forces customers to pull back on spending.Salesforce shares dropped nearly 8% on Thursday, after the
[11]
Salesforce CEO Marc Benioff Says 'AI Makes Every Entrepreneur A Super Entrepreneur' -- SMBs, Mid-Markets Now A Strategic Priority - Salesforce (NYSE:CRM)
Enterprise cloud solutions provider, Salesforce Inc. CRM, is turning its focus toward small and medium-sized businesses, alongside middle-market companies, as artificial intelligence reshapes how businesses adopt enterprise technologies. CRM is encountering selling pressure. See what is driving
[12]
Marc Benioff Uses Salesforce Earnings To Warn Against AGI Hype, Dismisses Narrative Of SaaS Becoming Obsolete: 'Nonsense' - Salesforce (NYSE:CRM)
Salesforce Inc. CRM reported stronger-than-expected second-quarter results on Wednesday, but shares slipped in after-hours trading as CEO Marc Benioff used the earnings call to caution investors and peers against the hype surrounding artificial general intelligence. Salesforce Beats Q2 Estimates,
[13]
Salesforce Stock Falls After Q2 Beat As Marc Benioff Tells Jim Cramer Investors Should Stop Nitpicking: 'Our Results Are Absolutely Fantastic' - Salesforce (NYSE:CRM)
Salesforce Inc. CRM delivered stronger-than-expected fiscal second-quarter results on Wednesday, but shares dropped in after-hours and further in pre-market trading on Thursday as CEO Marc Benioff told Jim Cramer that investors are focusing too much on guidance instead of the company's AI-driven
[14]
Salesforce Posts 10% Revenue Gain in Q2
Salesforce (CRM -7.96%), provider of cloud-based customer relationship management software, reported its Q2 FY2026 earnings on Sept. 3, 2025. The period delivered $10.2 billion in revenue, a 10% year-over-year increase. Adjusted earnings per share landed at $2.91. Adjusted operating margin rose to
[15]
Why Salesforce Stock Fell 8.5% This Morning | The Motley Fool
Shares of Salesforce (CRM -5.58%) took a significant hit on Thursday. Following the company's release of second-quarter results, the stock fell as much as 8.5% in the morning session. By 11:30 a.m. ET today, Salesforce had recovered to a 5.7% overnight price drop. Wall Street's average analyst had
[16]
Is It Time to Buy Salesforce Stock? | The Motley Fool
Salesforce isn't just an AI story. It's an underrated cash cow funding huge buybacks and a growing dividend. Salesforce's (CRM -4.70%) latest quarter delivered a powerful combination of triple-digit growth in artificial intelligence (AI) and robust financials. The customer relationship management
[17]
Salesforce Shares Dip Despite Solid Revenue and Earnings Growth. Should Investors Buy the Dip or Run for the Hills? | The Motley Fool
Salesforce (CRM 2.62%) reported solid fiscal 2026 second quarter results that topped analyst expectations, but the stock fell after the company failed to raise the high end of its revenue guidance. Investors have been wary of how artificial intelligence (AI) will impact its business moving
[18]
Salesforce shares drop as weak revenue forecast signals delayed AI returns
Salesforce shares dropped nearly seven per cent before the bell on Thursday, after the cloud software provider's weak third-quarter revenue forecast hinted at delayed returns from its AI investments. Rising investor bets on AI-driven cloud companies are pressuring them to deliver hefty returns on
[19]
Salesforce Q2 Revenue of $10.24 Billion Beats Estimates, Amid Slow AI Growth
Despite the strong numbers, the company gave a cautious forecast for the next quarter. Salesforce expects revenue between $10.24 billion and $10.29 billion, slightly below analyst predictions. Full-year revenue guidance stays at $41.1 billion to $41.3 billion. Investors reacted cautiously, and
[20]
Salesforce Shares Slip as Investors Fret Over Light AI Returns - 2nd Update
Salesforce's light sales outlook and investor concerns about artificial-intelligence returns weighed on its shares, despite higher-than-expected revenue and profit in the second quarter. The customer-relationship management platform said Wednesday that it expects revenue in the current third
[21]
Salesforce 2Q Sales, Profit Rise as AI Agentforce Expands
Salesforce logged higher-than-expected revenue and profit in the second quarter, as its AI business continues to grow. The customer-relationship management platform on Wednesday posted a profit of $1.89 billion, or $1.96 a share, in the quarter ended July 31, up from $1.43 billion, or $1.47 a
[22]
Salesforce shares drop as weak revenue forecast signals delayed AI returns
(Reuters) -Salesforce shares dropped nearly 7% before the bell on Thursday, after the cloud software provider's weak third-quarter revenue forecast hinted at delayed returns from its AI investments. Rising investor bets on AI-driven cloud companies are pressuring them to deliver hefty returns on
[23]
The AI equation weighs on Salesforce
Disappointing forecasts and artificial intelligence that is still under-monetized: the customer management software giant continues to face obstacles, quarter after quarter. Salesforce shareholders have reason to feel dizzy. The stock leapt 150% in 2023-2024, although has lost 28% so far this
[24]
Salesforce forecasts weak current-quarter revenue, shares fall
(Reuters) -Business software provider Salesforce forecast third-quarter revenue below Wall Street estimates on Wednesday, as clients dial back spending on its enterprise cloud products due to macroeconomic uncertainty. The cloud software provider also announced a $20 billion increase to its
[25]
Salesforce shares drop as weak revenue view signals delayed AI returns
(Reuters) -Salesforce shares dropped nearly 8% on Thursday, after the cloud software provider's soft third-quarter revenue forecast hinted at delayed returns from its AI investments. Rising investor bets on AI-driven cloud companies are pressuring them to deliver hefty returns on their
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Salesforce's stock plummets as Q3 revenue forecast disappoints investors, raising questions about the company's AI strategy and its ability to monetize recent investments in the face of economic uncertainty.
Salesforce's AI Investments Under Scrutiny
Salesforce, once a darling of the stock market, is facing a challenging period as its artificial intelligence (AI) investments fail to yield immediate returns. The company's shares have plummeted 24% year-to-date, placing it among the 30 worst-performing stocks in the S&P 500 Index
1
. This sharp decline comes in stark contrast to the company's impressive performance in 2023 and 2024, when its stock soared over 150%1
.
Source: ET
Disappointing Q3 Revenue Forecast
The cloud software provider's recent earnings report has further exacerbated investor concerns. Salesforce forecast third-quarter revenue between $10.24 billion and $10.29 billion, with the midpoint falling below analysts' average estimate of $10.29 billion
2
3
. This weak outlook sent Salesforce shares tumbling nearly 7% in pre-market trading2
.AI Investments and Monetization Challenges
Salesforce has been aggressively integrating AI across its cloud services, culminating in the 2024 commercial launch of Agentforce, an AI agent platform designed to automate tasks and streamline operations
4
. However, the company's efforts to monetize these AI investments appear to be lagging, as evidenced by the disappointing revenue forecast3
.
Source: BNN
Economic Uncertainty and Customer Spending
The weak outlook is partly attributed to economic uncertainty, which has forced customers to pull back on spending
2
. This challenging macroeconomic environment is putting pressure on cloud companies like Salesforce to deliver substantial returns on their billion-dollar AI investments4
.Strategic Moves and Investor Reaction
In an attempt to boost investor confidence, Salesforce announced a $20 billion increase to its existing share buyback program, bringing the total to $50 billion
5
. However, this move did little to allay investor concerns about the company's growth prospects2
3
.Related Stories
Acquisitions and Job Cuts
Salesforce has recently returned to its strategy of acquisitions to expand its cloud offerings. In May, the company acquired data management platform Informatica for about $8 billion
4
. Additionally, CEO Marc Benioff revealed that Salesforce has cut 4,000 jobs in customer support due to AI, stating that the technology now accounts for about 30% to 50% of the company's work5
.
Source: SiliconANGLE
Valuation and Analyst Perspectives
Despite the recent setbacks, some analysts see potential for growth given Salesforce's current valuation. The stock trades at over 20.98 times its 12-month forward earnings estimates, compared to higher multiples for rivals Microsoft and Oracle
4
. J.P. Morgan analysts noted that the "second-quarter results and positive company commentary are sufficient at this juncture, considering CRM shares are trading near a historically low valuation level and deep discount to software peers"4
.As Salesforce navigates this challenging period, investors and industry observers will be closely watching to see if the company can successfully monetize its AI investments and regain its position as a top performer in the software sector.
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