Salesforce Inc., the customer-relationship management software giant, is set to release its earnings report after the market closes on Wednesday. This report will provide insights into how the company is faring in the ever-growing field of artificial intelligence (AI).
Like many others in the tech industry, Salesforce is eager to capitalize on the AI frenzy. The company recently raised its prices, emphasizing the added value it believes it brings to customers. Although these price hikes were not implemented until August, after the end of the latest quarter, executives may shed more light on this strategy.
While companies such as Nvidia Corp. dominated the previous earnings season with impressive AI-driven data-center sales, software companies serving business customers face challenges in a market where AI budgets are still being defined. These budgets did not exist a year ago, making it harder for companies like Salesforce to navigate.
As a component of the Dow Jones Industrial Average, Salesforce has encountered headwinds in recent quarters. With mixed demand checks and soft business spending, analysts are cautious due to the tough year-over-year comparisons.
According to FactSet surveys, analysts expect the following results for Salesforce’s fiscal second quarter:
- Adjusted earnings: $1.90 per share.
- Revenue: $8.53 billion, a 10.5% increase from a year ago.
- Subscription and support: $7.91 billion.
- Billings: $7.57 billion.
Looking ahead to the third quarter, analysts have an average forecast of:
- Adjusted earnings: $1.84 per share.
- Revenue: $8.67 billion, a 10.6% increase from a year ago.
- Subscription and support: $8.04 billion.
- Billings: $7.01 billion.
Furthermore, the company’s earnings report and analyst call will set the stage for its annual Dreamforce conference at the Moscone Center in San Francisco from September 12 to 14.
Salesforce Inc. is on track to lead the AI revolution. Don’t miss out on the biggest AI show in the U.S., hosted by Salesforce in a few weeks.
