Salesforce.com (CRM) shares plummeted 5.18% in after-hours trading on Wednesday, following the release of the company's quarterly earnings report. The cloud software giant reported strong fiscal fourth-quarter results that exceeded analyst expectations for both earnings and revenue.

Despite the earnings beat, investors reacted negatively to the company's annual revenue forecast for fiscal 2027, which came in slightly below Wall Street estimates. Salesforce projected revenue in the range of $45.80 billion to $46.20 billion, with the midpoint falling short of the consensus estimate of $46.06 billion. This guidance signaled ongoing pressure on enterprise software spending amid global economic uncertainty.

The sell-off was also fueled by persistent investor concerns about artificial intelligence disruption in the software sector. While Salesforce announced a massive $50 billion share repurchase program and introduced new AI metrics, the market remained focused on the threat that AI startups pose to traditional software business models. The broader software sector has been under pressure this year due to fears that AI tools could erode demand for established enterprise software products.