Salesforce raised its full-year revenue and earnings guidance on Wednesday, citing strong demand for artificial intelligence tools as shares jumped 7% in extended trading.
The San Francisco-based company now expects fiscal 2027 revenue of $46.1 billion to $46.4 billion, up from a prior range of $45.9 billion to $46.2 billion. Adjusted earnings per share are projected at $16.67 to $16.71, compared with the previous forecast of $14.06 to $14.12. CEO Marc Benioff highlighted "incredible demand" for AI and data products, noting annual recurring revenue in this segment is nearing $4 billion.
Salesforce reported quarterly revenue of $11.35 billion, slightly above the $11.32 billion estimate from LSEG, while adjusted earnings per share reached $5.90, exceeding the $3.26 forecast. The company had guided for revenue of $11.27 billion to $11.35 billion and EPS of $3.25 to $3.27 for the period.
The outlook improvement follows a prior quarter where Salesforce posted record results but warned of a potential "SaaSpocalypse"—a term used by analysts to describe the risk of traditional software-as-a-service platforms being displaced by cheaper, AI-driven alternatives. Companies like Anthropic have fueled concerns by offering AI modules that could replace enterprise applications for accounting or inventory management at a fraction of the cost.
To bolster its AI business, Salesforce agreed in June to acquire Fin, a startup specializing in AI agents that automate tasks such as customer support via live chat or phone. The $3.6 billion deal targets platforms capable of handling complex workflows independently. Fin counts Anthropic and DoorDash, owner of food delivery service Wolt, among its customers.
Salesforce shares have declined nearly 50% since the start of 2025 amid broader investor unease over the AI-driven disruption of legacy software models.
