Salesforce's Revenue Forecast Falls Short of Expectations Amid AI Product Launch and CEO's Critique of Big Tech
MY PROFESSION
MY TECH INTERESTS
MY INTERESTS
36m ago
Salesforce CEO Questions Big Tech's AI Effectiveness Amid Revenue Shortfall
- Salesforce CEO Marc Benioff criticized Big Tech's AI investments, questioning their effectiveness and returns.1
- Benioff stated that Salesforce is not investing in costly data centers but is focusing on integrating AI into existing products.1
- Benioff referred to Microsoft as a reseller of OpenAI and expressed skepticism about their AI-powered tools.1
- Salesforce reported fourth-quarter revenue of $9.99 billion, missing consensus estimates.1
- Marc Benioff raised concerns about the effectiveness of Big Tech's AI investments and emphasized Salesforce's focus on AI integration rather than costly data centers.
- He also referred to Microsoft as a 'reseller of OpenAI' and highlighted Salesforce's fourth-quarter revenue miss.
2h ago
Benioff Critiques Big Tech AI Spending and Reports Revenue Miss
- Marc Benioff criticized Big Tech's AI spending, stating, We aren't building huge $10 million, $20 million, $30 million, $100 billion data centers and questioned the returns on such investments.1
- Benioff described Microsoft as a reseller of OpenAI and expressed skepticism about their AI-powered tools, asking, Where are they at best practice?1
- Salesforce reported fourth-quarter revenue of $9.99 billion, missing consensus estimates, which led to a 5% drop in shares after the forecast for fiscal 2026 revenue was below expectations.1
- Marc Benioff criticized Big Tech's AI spending and expressed skepticism about Microsoft's AI tools.
- Salesforce's fourth-quarter revenue missed estimates, causing a 5% drop in shares.
Aol
11h ago
Background
- Salesforce Inc. provided a fiscal-year revenue forecast of $40.5 billion to $40.9 billion, which was below analyst expectations.1
- The adjusted operating margin for Salesforce is projected to be about 34%, slightly above the average analyst estimate of 33.9%.1
- Salesforce Inc. has announced a fiscal-year revenue forecast of $40.5 billion to $40.9 billion for the year ending January 2026. This forecast is below analysts' expectations, which averaged $41.5 billion, leading to concerns about the impact of the company's new artificial intelligence product on sales growth.
- The company, based in San Francisco, revealed that its adjusted operating margin is projected to be around 34%, slightly above the average analyst estimate of 33.9%. This indicates a modest improvement in profitability, despite the lower revenue outlook.