Post by : Monika
Photo: Reuters
Salesforce, one of the world’s biggest software companies, recently shared its financial forecast for the third quarter of 2025. Instead of bringing excitement, the announcement worried many investors. The company said that sales from July to September would be weaker than expected. This news hit its stock price hard, with shares falling more than 5% in after-hours trading.
The problem is not that Salesforce is failing as a business. In fact, the company reported $10.24 billion in sales for the second quarter, which was slightly higher than what experts had predicted. But investors were disappointed because Salesforce is spending a lot on artificial intelligence (AI)—especially its new platform called Agentforce—and they want to see quick profits from these investments.
So far, AI at Salesforce is growing, but it still makes up less than 3% of the company’s total sales. This shows that it could take years before AI becomes a big moneymaker for Salesforce. Analysts even believe that real profits from AI may not come until 2027.
Why the Weak Forecast Matters
The forecast matters because it shows the gap between big promises about AI and real money on the table. Investors want to know when Salesforce’s AI tools will start producing large profits. Let’s break down the key reasons this matters.
1. AI Needs to Pay Off Soon
Salesforce has invested billions into developing AI systems. Agentforce, its newest platform, is supposed to transform how businesses interact with customers by automating communication and data analysis. However, with sales slowing down, it’s not clear when this huge investment will begin to pay off.
2. Investors Expect ROI
“ROI” means Return on Investment. Salesforce has told the world that AI will bring massive returns. But now investors feel frustrated because the company’s profits from AI are small compared to the money spent.
3. Stock Buybacks Didn’t Calm Worries
To show confidence, Salesforce added another $20 billion to its stock buyback program, raising the total to $50 billion. A buyback usually signals that a company believes in its future and wants to reward shareholders. But this time, it didn’t work. Investors are not just looking for financial tricks—they want real AI profits.
Salesforce’s Q2 Results: A Mixed Bag
The second quarter of 2025 gave investors mixed feelings.
Revenue Beat Predictions
Salesforce brought in $10.24 billion, slightly higher than the $10.14 billion that analysts expected. That is a positive sign, showing that the company’s core software business is still strong.
AI Still a Small Piece
Even though Salesforce has launched AI features in many of its tools, the AI-related income remains small. Data Cloud and Agentforce together make up less than 3% of revenue.
Profits May Come Later
Analysts think that big AI-driven revenue will take years. The current expectation is 2027, which feels too far away for many investors who want results now.
The Bigger Picture: AI Spending and Patience
Salesforce started its major AI journey after ChatGPT became famous in 2022. Like many tech firms, it rushed to include AI in its products, hoping to lead the next big revolution in technology.
AI has been added to nearly all of Salesforce’s cloud tools. The company is also using AI internally to cut costs. For example, AI now handles 30% to 50% of its own operations, including customer support. The company even cut 4,000 human support jobs because AI could handle them.
Still, there is a gap between cost savings and new income. AI is helping Salesforce save money, but it is not yet bringing in big new sales.
Some analysts have said that businesses using Salesforce are overwhelmed by the flood of AI ideas. They aren’t sure how AI tools like Agentforce will actually help them make money. This leads to decision fatigue, meaning companies delay buying AI tools until they see clearer benefits.
This lack of urgency is one of the reasons Salesforce’s stock has dropped between 24% and 28% this year. Investors are losing patience with promises and want to see actual profits.
What Salesforce Is Doing to Improve
Salesforce knows investors are worried, so it is taking steps to show progress.
1. Boosting Stock Buybacks
By raising its buyback program to $50 billion, Salesforce hopes to prove it still believes in its future growth. This also puts extra money into the hands of investors.
2. Automating with AI
CEO Marc Benioff has openly said that AI is transforming how Salesforce works. With AI now running nearly half of its operations, the company is saving millions of dollars. This is a sign that AI can be effective, even if customers are not yet spending big on it.
3. Growing Through Acquisitions
Salesforce is also buying smaller companies that specialize in cloud tools and AI. These acquisitions help expand its platform and make it more attractive to businesses. The hope is that these new tools will boost adoption of Salesforce’s AI faster.
Why This Story Matters
This story matters because it is not just about Salesforce—it represents the broader challenge of AI in business.
AI is Taking Center Stage
Around the world, companies are racing to use AI. Investors want fast results, but the truth is that AI is still in an early stage. Salesforce’s struggles show that while AI is exciting, it does not bring overnight profits.
The Economy is Uncertain
The global economy is shaky. Businesses are careful about spending money, especially on new tools. Even if AI can help them in the future, many companies don’t want to spend much right now.
The Future of Cloud Software
Salesforce is a leader in cloud software. Its experience shows what could happen with AI. Cloud software changed how companies worked over the last 20 years. Now, AI might do the same. But success will depend on proving its real-world value.
Point Explanation
Salesforce is at a turning point. The company has introduced AI to nearly every part of its business and has started using AI to save money. However, investors want more than savings—they want new profits.
The current challenge is proving that AI is not just a trend but a real source of income. If Salesforce succeeds, it could transform from being just a cloud software leader to being a pioneer in smart AI for businesses.
But for now, its slow AI growth, weaker sales forecast, and cautious customer spending have created nervousness in the stock market.
The future of Salesforce—and perhaps the larger AI business world—depends on whether these investments can soon turn into profits that match the hype.
AI monetization
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