Salesforce’s stock price dropped 5% in after-hours trading on Wednesday following the company’s disappointing earnings outlook for 2025. The decline was partly due to executives’ comments that Agentforce, a new technology, would contribute modestly to revenue this year, with a more meaningful contribution expected in 2026.
Salesforce reported higher-than-expected annual recurring revenue from its data cloud and artificial intelligence business, which more than doubled year over year. However, the company’s guidance for full-year sales and operating margin fell short of expectations.
CEO Marc Benioff said the company is on track to deliver upside on its operating margin guidance and expressed optimism about the year ahead. Salesforce closed 5,000 Agentforce deals since October, with more than 3,000 paid deals.
The disappointing earnings outlook also led to a sell-off in shares of AI darlings such as Nvidia, Tesla, and Meta. However, some software companies like Snowflake and ZoomInfo saw their stock prices rise after beating expectations.
Salesforce’s net sales came in at $10 billion, with adjusted operating margin at 33%, both above expectations. The company’s diluted earnings per share rose 21.4% year over year to $2.78. Despite the disappointing guidance, Salesforce still expects strong growth and increasing adoption of Agentforce.
Source: https://finance.yahoo.com/news/salesforce-ceo-marc-benioff-on-guidance-miss-well-have-a-great-year-012045289.html