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.
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