Salesforce's revenue forecast falls short, raising concerns about its AI strategy

The Chronify

September 4, 2025

In a stark signal that companies are struggling to turn AI hype into profits, Salesforce has issued a disappointing third-quarter revenue forecast. The cloud software giant projected revenue of between $10.24 billion and $10.29 billion, a figure that fell short of Wall Street expectations and sent its stock plummeting more than 5% in after-hours trading.

The weak outlook suggests that Salesforce's investments in artificial intelligence, including its "Agentforce" platform designed to automate tasks for clients, are not yet paying off. Since the debut of OpenAI's ChatGPT in 2022, Salesforce has poured significant resources into integrating AI across its services. However, a tight macroeconomic environment and cautious corporate spending have made it difficult to monetize these new offerings.

"Investors may feel a sense of frustration, especially as they contemplate the timeline for adequate returns on AI investments," said Melissa Otto, head of research at Visible Alpha.

Amid the slowdown, the company announced a $20 billion increase to its share buyback program, but the move failed to reassure investors. The company is now reportedly returning to a strategy of acquisitions to expand its offerings, a move that could draw scrutiny from activist investors.

The news comes just a week after CEO Marc Benioff disclosed that AI has already led to the elimination of 4,000 jobs in the company’s customer support division, stating that the technology now accounts for up to half of Salesforce's work.