Salesforce Boosts Revenue Forecast on Strong Demand for AI Tools

Salesforce has raised its full-year revenue forecast after seeing strong demand for its AI-powered tools. The company expects fiscal 2027 revenue between $46.1 billion and $46.4 billion, beating its prior outlook range of $45.9 billion to $46.2 billion. Salesforce's CEO Marc Benioff said the company is 'seeing incredible demand' for its AI and data products, with annual recurring revenue about to cross $4 billion. The company has also raised its annual adjusted earnings per share forecast to between $16.67 and $16.71.

The updated forecasts come after Salesforce announced an expanded partnership with AI giant Anthropic on Wednesday. The companies' new 'Claudeforce' initiative will integrate Anthropic's Claude AI models across Salesforce's workplace applications, building on their June partnership where an AI agent was added to the business software company's Slack app.

Salesforce has been gaining traction with its AI-powered tools and autonomous agents that can automate sales, service, and marketing tasks. The company sees this area as a major growth driver for the future. Its products, such as Headless 360 and Slackbot, have created new ways for users to access traditional Salesforce applications and data.

Rebecca Wettemann, CEO of industry analyst firm Valoir, said that Salesforce's AI and data products are 'helping customers extract more value from their information.' The company now expects third quarter revenue in the range of $11.42 billion to $11.5 billion, slightly above analysts' estimates of $11.41 billion.