Investing.com — Salesforce reported Wednesday guidance for the current quarter that fell well short of analyst estimates marking a dent to optimism that the software company’s AI strategy would cash in on the artificial intelligence revolution sooner rather than later.
Salesforce Inc (NYSE:) shares fell more than 17% in after-hours trade following the report.
Fiscal second-quarter adjusted EPS was expected in a range of $2.44 to $2.36 on revenue of between $9.20B and $9.25B, missing Wall Street estimates of $2.40 and $9.34B, respectively.
Salesforce.com adjusted EPS of $2.44 on revenue of $9.13 billion. Analysts polled by Investing.com anticipated EPS of $2.37 on revenue of $9.15B.
The weaker guidance marked a dent to optimism in the company’s AI strategy that seeks to use the Salesforce AI Cloud to bring the power of generative AI to platform’s business users.
Subscription and support revenues for the quarter were $8.59B, an increase of 12% year-over-year. Professional services and other revenues for the quarter were $548M, down from $605M year-over-year.
Looking ahead to the fiscal-year 2025, the company maintained its revenue guidance in a range of $37.7B to $38.0B and adjusted earnings of $9.86 to $9.94 per share. The company also cut its annual operating margin guidance to 19.9%
