The company’s downbeat forecast signals a likely slowdown in cloud and tech spending as clients grapple with high interest rates and rising inflation, compelling them to keep a lid on costs.
Elevate Your Tech Prowess with High-Value Skill Courses
| Offering College | Course | Website |
|---|---|---|
| IIT Delhi | IITD Certificate Programme in Data Science & Machine Learning | data-ga-onclick=”Emeritus_edit_articles_click#108087549#tech” target=”_blank” rel=”nofollow sponsored noopener” class=”btn btn_visit” href=”https://iitd.emeritus.org/iitd-certificate-programme-in-data-science-machine-learning/index.php?utm_source=timeset&utm_medium=affiliate&utm_campaign=times_et_article_textcta_edit&utm_content=108087549″>Visit |
| IIM Lucknow | IIML Executive Programme in FinTech, Banking & Applied Risk Management | data-ga-onclick=”Emeritus_edit_articles_click#108087549#tech” target=”_blank” rel=”nofollow sponsored noopener” class=”btn btn_visit” href=”https://iiml.emeritus.org/iiml-executive-programme-in-fintech-banking-applied-risk-management/index.php?utm_source=timeset&utm_medium=affiliate&utm_campaign=times_et_article_textcta_edit&utm_content=108087549″>Visit |
| Indian School of Business | ISB Product Management | data-ga-onclick=”Emeritus_edit_articles_click#108087549#tech” target=”_blank” rel=”nofollow sponsored noopener” class=”btn btn_visit” href=”https://online-er.isb.edu/product-management/index.php?utm_source=timeset&utm_medium=affiliate&utm_campaign=times_et_article_textcta_edit&utm_content=108087549″>Visit |
The company sees revenue between $37.7 billion to $38 billion for full-year 2025, compared with analysts’ estimate of $38.62 billion, according to LSEG data.
Warnings of a slow economy prompted Salesforce to cut about 700 employees, or roughly 1% of its global workforce, last month, adding to the slew of layoffs across the tech and media industry.
Salesforce is guiding for only 8-9% growth (for the full year), which moves it out of the high growth category. In order to make up for that, it is introducing a dividend, which is appropriate for the lower level of growth,” said Gil Luria, analyst at D.A. Davidson.
Cloud data analytics Snowflake also forecast first-quarter revenue below estimates adding to the woes of cloud firms as they face uncertainty this year.
Discover the stories of your interest
However, Salesforce beat revenue estimates for fourth-quarter revenue and profit as it benefited from higher cloud spending, joining other cloud giants like Amazon.com and Microsoft. The company reported revenue of $9.29 billion for the quarter ended Jan. 31, beating analysts’ estimate of $9.22 billion.
On an adjusted basis, the company earned $2.29 per share compared with estimates of $2.26 per share.
In early 2023, Salesforce had become a target for activist investors to push for changes resulting in cost cuts, increased share buybacks and a dismantled mergers and acquisition committee.
Salesforce expects adjusted profit between $9.68 to $9.76 per share for the full-year, compared with estimates of $9.57 per share.
