Feb 25 (Reuters) – Salesforce forecast fiscal 2027 revenue below Wall Street expectations on Wednesday, signaling sluggish spending on enterprise business software as it invests heavily in its artificial intelligence platform to drive up demand.
Shares of the San Francisco-based company fell 4% in extended trading.
It expects annual revenue in the range of $45.80 billion to $46.20 billion, with the midpoint coming in slightly below an estimate of $46.06 billion, according to data compiled by LSEG.
The forecast shows that demand for business software has remained under pressure from global economic uncertainty as companies pare back tech budgets, choosing to focus on essential spending and cost-cutting.
Salesforce has touted its agentic platform, Agentforce, as its next lever of growth, with co-founder Marc Benioff attempting to transform the company into an AI-driven data and cloud platform.
It also announced a $50 billion share repurchase program.
Salesforce reported fourth-quarter revenue of $11.20 billion, coming in slightly ahead of an estimate of $11.18 billion.
(Reporting by Zaheer Kachwala in Bengaluru and Juby Babu in Mexico City; Editing by Alan Barona)
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