Stock Track | Salesforce Plunges 5.08% Post-Market on Below-Estimate Revenue Guidance and AI Disruption Fears

Stock Track09:13

Salesforce.com stock tumbled 5.08% in post-market trading on Wednesday, despite the company reporting quarterly earnings that exceeded analyst expectations. The sharp decline followed the release of the cloud software giant's fiscal fourth-quarter results.

The sell-off was primarily driven by the company's annual revenue forecast for fiscal 2027, which came in slightly below Wall Street estimates. Salesforce projected revenue in the range of $45.80 billion to $46.20 billion, with the midpoint falling short of consensus expectations. This guidance signaled ongoing pressure on enterprise software spending amid global economic uncertainty.

Investors also reacted to persistent concerns about artificial intelligence disruption in the software sector. While Salesforce announced a massive $50 billion share repurchase program and introduced new AI metrics, the market remained focused on the threat that AI startups pose to traditional software business models. The broader software sector has been under pressure this year due to fears that AI tools could erode demand for established enterprise software products.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment