Salesforce predicts that annual revenue will be lower than expected and the stock price has fallen.

Salesforce predicted on Wednesday that its revenue for the fiscal year 2027 would be lower than Wall Street expectations, indicating weakened spending on enterprise business software as the company invests heavily in its artificial intelligence platform to drive demand growth. The San Francisco-based company's stock price fell over 5% in after-hours trading, with a drop of over 28% so far this year. The company expects full-year revenue to be between $458.0 billion and $462.0 billion, with the midpoint slightly below the expected $460.6 billion. The forecast shows that the uncertainty of the global economy, as businesses reduce technology budgets and focus on essential expenses and cost-cutting, is putting pressure on the demand for business software.