Salesforce Reports Strong Q4 but Lowers 2027 Revenue Forecast Amid AI Competition

Salesforce reported strong fiscal fourth-quarter results with 12% revenue growth to $11.2 billion, aided by its Informatica acquisition and AI tool Agentforce, whose annual recurring revenue rose to $800 million. However, its fiscal 2027 revenue forecast of $45.8-$46.2 billion fell slightly below Wall Street expectations, causing shares to decline amid concerns over AI competition and shifting SaaS demand. The company announced a $50 billion stock buyback and raised its long-term 2030 revenue target to $63 billion. Meanwhile, Snowflake projected fiscal 2027 product revenue above estimates, driven by AI demand, despite investor skepticism about software sector prospects.