mexico city – Salesforce expected second-quarter revenue to be lower than Wall Street expected on May 27, as stronger-than-expected first-quarter results were overshadowed by concerns about artificial intelligence disrupting traditional software demand.
Shares of the business software provider ended down 0.6% in volatile after-hours trading. After falling more than 20% in 2025, it has fallen nearly 33% so far in 2026. This decline mirrors declines in other application software companies such as ServiceNow and Adobe.
Salesforce, like its peers, is battling growing investor concerns that rapidly evolving AI tools could lure business customers away from traditional software. automation Do the task once treated by such a person product.
Advanced coding tools from Anthropic and OpenAI have driven the recent sell-off in software stocks and ushered in what Wall Street calls the “SaaSpocalypse.” It’s a term that reflects the dark clouds surrounding software-as-a-service companies.
Salesforce expects second-quarter revenue to be between US$11.27 billion (S$14.4 billion) and US$11.35 billion, lower than analysts’ average estimate of US$11.36 billion, according to data compiled by LSEG.
“The next few quarters will be critical for Salesforce in demonstrating both the value its core customers are getting from per-seat licenses and the value Agentforce customers are getting from AI,” said Rebecca Wetteman, CEO of industry analyst firm Valoir.
Salesforce is reinventing itself as an AI agent company through its proprietary AI tool, Agentforce designed Handling tasks such as customer service without human supervision. Still, the product’s features don’t necessarily align with Salesforce’s marketing, Bloomberg News reported last week.
Agentforce’s annual revenue is expected to reach US$1.2 billion, up from February’s US$800 million. Use of AI models within the Salesforce platform more than doubles from The company said in the previous quarter.
Vice President Mike Spencer said in an interview that customers are becoming more comfortable with AI, which is helping the company improve its performance. “We’re seeing some level of adoption and usage, and that’s supporting the acceleration.”
Healthy results with Agentforce Not yet That’s pushing up the overall numbers, Barclays analyst Raimo Renshaw wrote in a note. “We don’t know if this is enough to cause a meaningful response.”
Previously in maythe company said it would provide less detailed information about how much revenue is tied to a particular product. Going forward, we will report on sales growth in two major categories: Applications, Infrastructure, and Data. Reuters, Bloomberg
