Salesforce forecasts annual revenue below estimates

By Thomson Reuters Feb 28, 2024 | 3:08 PM

(Reuters) -Salesforce forecast fiscal 2025 revenue below market expectations on Wednesday as it expects weak client spending on its cloud and business products.

Shares of the company fell over 6% in extended trading.

The company expects revenue in the range of $37.7 billion to $38 billion, compared with analysts’ estimate of $38.62 billion, according to LSEG data.

Salesforce’s downbeat forecast shows signs that cloud and tech spending is expected to slow down as clients grapple with high interest rates and rising inflation, compelling them to keep a lid on costs.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Maju Samuel)