Salesforce Forecasts Weak Third-Quarter Revenue, Citing AI Monetisation Lag
- Sep 4, 2025
- 2 min read
Salesforce projected third-quarter revenue below Wall Street estimates on Wednesday, signalling lagging monetisation for its artificial intelligence agent platform. Clients are reducing spending due to macroeconomic uncertainty, impacting the cloud software provider's growth.
The company announced a USD 20 billion increase to its existing share buyback program. However, this did not alleviate investor concerns, and Salesforce's shares dropped over 5% in extended trading.
Since OpenAI's ChatGPT launched in 2022, Salesforce has widely adopted artificial intelligence. It integrated AI into its various cloud services and created Agentforce, an AI agent platform designed to automate tasks, streamline operations, and boost margins.
Investors expect cloud firms to demonstrate returns on the billions poured into AI. An uncertain macroeconomic environment and volatile customer spending weigh on growth prospects.
Head of Research Melissa Otto at S&P Global's Visible Alpha commented, "Investors may feel a sense of frustration, especially as they contemplate the timeline for adequate returns on AI investments."
The company has reverted to an acquisition strategy to expand its cloud offerings. This approach could potentially attract activist investor scrutiny.
Chief Executive Officer Rebecca Wettemann of industry analyst firm Valoir stated, "As Salesforce brings more acquisitions into the fold, it will be able to offer even more intelligent agentic capabilities to customers."
Chief Executive Officer Marc Benioff said last week that Salesforce had cut 4,000 jobs in customer support due to AI. He previously noted the technology accounts for about 30% to 50% of the company's work.
For the third quarter, Salesforce anticipates revenue between USD 10.24 billion and USD 10.29 billion. The midpoint of this range falls below analysts' average estimate of USD 10.29 billion, according to LSEG data.
On an adjusted basis, Salesforce expects earnings per share between USD 2.84 and USD 2.86. The midpoint of this forecast aligns with analysts' estimates.
Second-quarter revenue reached USD 10.24 billion, exceeding expectations of USD 10.14 billion.
Salesforce forecast third-quarter revenue below analyst estimates.
This signals challenges in monetising its artificial intelligence agent platform, Agentforce.
The company announced a USD 20 billion share buyback increase, but its shares declined over 5%.
Source: REUTERS
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