Salesforce Shares Slide Nearly 7% on Conservative Q3 Outlook

New York, September 4, 2025 - Shares of Salesforce (NYSE: CRM) fell nearly 7% in premarket trading on Thursday after the cloud-software giant issued third-quarter revenue guidance below analyst expectations.

Salesforce reported second-quarter adjusted earnings per share of $2.91, beating consensus estimates of $2.78, and revenue of $10.24 billion, ahead of the $10.14 billion consensus. However, the company projected third-quarter revenue of $10.24 billion to $10.29 billion, falling shy of the $10.29 billion analysts had anticipated. CEO Marc Benioff defended the cautious outlook as “appropriately conservative” during a CNBC interview, emphasizing the importance of prudent forecasting amid economic uncertainty.

Despite beating both top- and bottom-line expectations for Q2, investor concerns over delayed returns on Salesforce’s multi-billion-dollar artificial-intelligence investments and a tepid revenue outlook outweighed the positive results. The company also announced a $20 billion increase to its existing share-buyback program, a move that failed to stem the sell-off.

Wall Street’s reaction was swift: multiple brokerages trimmed their price targets on Salesforce stock. Piper Sandler lowered its target from $335 to $315, JPMorgan cut from $380 to $365, and Canaccord Genuity reduced its target from $350 to $300, although several firms maintained “Buy” or “Overweight” ratings, citing long-term AI growth prospects.

Entering Thursday’s session, Salesforce shares were down approximately 23% year-to-date, trading near historic lows relative to peer valuations. Investors will be watching closely for any indication that the company’s AI-driven “Agentforce” platform can accelerate growth in the back half of fiscal 2026.