Salesforce Q2 Revenue Forecast Misses Estimates Amid AI Fears
Salesforce (CRM) forecast second-quarter revenue below analyst estimates, citing growing competition from AI tools like those from Anthropic. The stock dropped 3% in extended trading.
Key Numbers
Salesforce (CRM) forecast second-quarter revenue for fiscal 2026 below Wall Street estimates on Wednesday, amid ongoing concerns that AI rivals such as Anthropic could rapidly disrupt demand for traditional software vendors. The company's shares fell 3% in extended trading.
Key Financial Results
Salesforce has not yet reported Q1 results, but its Q2 guidance came in below expectations. Key figures include:
| Metric | Q2 Guidance | Analyst Estimates |
|---|---|---|
| Revenue | Below estimates | Not yet disclosed |
| EPS | Not yet disclosed | Not yet disclosed |
Highlights from the Statement
The company attributed the weak guidance to increased competition from AI solutions that could replace some functions of its traditional software. Management noted that customers are becoming more cautious in software spending as new AI tools emerge.
Future Guidance
Salesforce expects Q2 fiscal 2026 revenue (ending July 2026) to come in below the average analyst estimate of $9.2 billion. The company did not provide a specific figure.
Impact on the Stock
Salesforce shares fell 3% in after-hours trading following the guidance, reflecting investor concern over continued competitive pressures from AI on the company's business model.
What This Means for Investors
Salesforce's guidance highlights the challenges traditional software companies face in the age of AI. Investors should monitor the company's ability to integrate AI tools into its products to maintain market share.
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