Salesforce Inc (NYSE:CRM) stock fell 5.65% (As on September 4, 11:24:01 AM UTC-4, Source: Google Finance) after the company forecast third-quarter revenue below Wall Street estimates, signaling lagging monetization for its highly-touted artificial intelligence agent platform as clients dial back spending due to macroeconomic uncertainty. The cloud software provider also announced a $20 billion increase to its existing share buyback program, but that was unable to allay investors’ concerns. The company has returned to its strategy of acquisitions to expand its existing cloud offerings, potentially inviting activist investor scrutiny. CEO Marc Benioff said last week that Salesforce has cut 4,000 jobs in customer support due to AI, after earlier saying that the technology accounts for about 30% to 50% of the company’s work.
Moreover, Data Cloud and AI annual recurring revenue over $1.2 billion, up 120% Y/Y. Salesforce has closed over 12,500 deals since launching Agentforce, of which over 6,000 are paid. Over 40% of Data Cloud and Agentforce Q2 bookings came from existing customer expansion. In Q2, the company closed over 60 deals greater than $1 million that include both Data Cloud and AI. Service and Platform were in all Q2 Top 10 Deals. On help.salesforce.com, Agentforce has handled over 1.4 million requests
CRM in the second quarter of FY 26 has reported the adjusted earnings per share of $2.91, beating the analysts’ estimates for the adjusted earnings per share of $2.78. The company had reported the adjusted revenue growth of 10 percent to $10.24 billion in the second quarter of FY 26, beating the analysts’ estimates for revenue of $10.14 billion. CRM saw a 120% year-over-year increase in its AI and data product line, highlighting strong demand for its AI-driven solutions.
For the third quarter, Salesforce sees revenue between $10.24 billion and $10.29 billion, with the midpoint coming below analysts’ average estimate of $10.29 billion, according to data compiled by LSEG. On an adjusted basis, Salesforce expects earnings per share between $2.84 and $2.86, the midpoint of which is in line with analysts’ estimates.
The company raises low end of full year FY26 revenue guidance to $41.1 billion to $41.3 billion, up 8.5% – 9% Y/Y and 8% in CC. CRM updates full year FY26 GAAP operating margin guidance to 21.2%, and raises non-GAAP operating margin guidance to 34.1%. The company has raised full year FY26 operating cash flow growth guidance to approximately 12% to 13% Y/Y.