MW Salesforce shares sink on soft revenue outlook as AI disruption concerns linger

By Christine Ji and Hannah Pedone

While the company's Agentforce offering is picking up steam, Salesforce didn't deliver the top-line growth investors wanted to see

Shares of Salesforce fell 2% on Wednesday after the company reported earnings.

Salesforce's mixed April quarter results didn't give investors a definitive answer regarding whether or not the company could buck the software selloff and remain competitive in an AI-first market.

Shares of Salesforce (CRM) fell 3% on the news. For the first fiscal quarter of 2027, Salesforce reported revenue of $11.1 billion, in-line with FactSet consensus estimates. That marks a 13% year-over-year increase, or 12% in constant currency.

Salesforce reported earnings that rose 50% from a year ago to $3.88 a share, surpassing Wall Street estimates of $3.13. The boost to earnings was partially influenced by Salesforce's share buyback policy, which the company announced on its last earnings report.

The $50 billion buyback is one of the largest ever announced, and was initiated to take advantage of Salesforce's discounted stock price. Salesforce spent $27.1 billion on share repurchases during the April quarter.

More: Salesforce's record $50 billion stock-buyback plan is proving controversial on Wall Street

For the current quarter, Salesforce guided for revenue between $11.27 billion to $11.35 billion, coming in a hair short of analyst estimates of $11.351 billion. The company raised the midpoint of full-year revenue guidance for the 2027 fiscal year, projecting between $45.9 billion and $46.2 billion. Previously, the company had guided for $45.8 billion of revenue on the low end, but analysts were expecting $46.1 billion.

The company expects to see organic revenue acceleration in the second half of the fiscal year.

Salesforce CEO Marc Benioff said that the quarter was "outstanding" in a press release, with "record" revenue. He called agentic AI the "biggest growth opportunity" for customers and the company. Growth in Agentforce was encouraging: Agentforce's annual recurring revenue reached a new milestone this quarter, growing 205% year-over-year to $1.2 billion. More than half of Agentforce and Data 360 bookings came from existing customers in the first quarter, the company shared.

The company shared that Agentforce is now powering "every Customer 360 application and helping tens of thousands of businesses across every industry transform into Agentic Enterprises."

However, another metric investors were monitoring for AI traction fell flat. Current remaining performance obligations, or the value of signed contracts expected to convert into revenue within the next 12 months, came out to $33.6 billion, slightly below consensus estimates of $33.7 billion.

Read: ServiceNow's stock notches best day in a year - flashing a green light for the software sector

-Christine Ji -Hannah Pedone

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May 27, 2026 16:30 ET (20:30 GMT)

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