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Salesforce issued weaker-than-expected guidance for the year ahead, which did little to ease investors’ concerns that the AI ​​start-up will disrupt the software giant’s business model.
The group said on Wednesday its full-year revenue would come in between $45.8bn and $46.2bn. That compares with analysts’ estimates of $46.1 billion, according to S&P Visible Alpha.
Salesforce, which produces software to track customer relationships, has faced considerable pressure from investors amid the market downturn due to the risk posed to software companies by AI start-ups like Anthropic.
Shares of the San Francisco-based company have been dragged down along with competitors like Intuit, Workday and ServiceNow, falling about 27 percent this year by Wednesday’s closing bell. They fell another 5 percent in after-hours trading.
Fourth-quarter earnings were mixed with soft guidance, with Salesforce reporting revenue rose 12 percent to $11.2 billion in the three months ended Jan. 31, in line with expectations. Operating profit of $1.9 billion fell short of the $2.1 billion expected by analysts.
The company’s AI products, AgentForce and Data 360, generated annual recurring revenue of $2.9 billion, up from $1.4 billion in the previous quarter. This includes $1.1 billion from Informatica, which it acquired in late 2025.
Chairman and Chief Executive Marc Benioff said, “We have rebuilt Salesforce to be the operating system for the agentic enterprise, bringing humans and agents together on one trusted platform.”
Salesforce is also struggling with the pricing model that will underpin its future AI services, traditionally focusing on a “per-seat” licensing approach.
Benioff emphasizes that a user-based approach provides predictability to customers. This contrasts with the consumption-based model adopted by some AI start-ups or the results-based approach promoted by rival start-up Sierra, founded by former Salesforce co-CEO Brett Taylor.
Salesforce also boosted its dividend and announced a new $50 billion share buyback program, following a $23 billion buyback last year.
Benioff – a longtime supporter of progressive causes – has come under fire from Salesforce employees after making several comments regarding immigration and law enforcement.
The chief executive invited to stand employees who had traveled to Las Vegas this month for the company’s annual “Company Kickoff” before remarking that ICE agents were present and monitoring them.
The comments came months after the billionaire invited US President Donald Trump to deploy the National Guard to San Francisco to curb crime and public drug use.
His recent comments have drawn considerable backlash from employees, including from senior executives like Rob Seaman, general manager of subsidiary Slack.
In a message to staff, Seaman wrote that he “cannot defend or explain” Benioff’s comments. “They don’t match my personal values ​​and I know that’s the case for many of you too.”
Salesforce has also been hit by the departures of senior figures in recent months, including Slack chief executive Dennis Dresser, who joined OpenAI as chief revenue officer. Tableau chief Ryan Ayte and chief trust officer Brad Arkin have also stepped down.
