Salesforce chief executive Marc Benioff has addressed ongoing investor concerns regarding the potential impact of artificial intelligence (AI) on the business software landscape, even as the company reported a conservative revenue forecast that fell short of analysts’ expectations. During a financial update, Salesforce projected its full-year revenue to be between $45.8 billion and $46.2 billion, slightly below the anticipated $46.1 billion, stirring apprehension among stakeholders as the company navigates a market increasingly wary of AI disruptors.
Despite the apprehension referred to by some investors as a “SaaS-pocalypse,” Benioff expressed confidence in the resilience of software as a service (SaaS), asserting that numerous companies continue to rely on these services, which are significantly enhanced by AI capabilities. He cited Salesforce’s new AI tool, Agentforce, which facilitates client-related tasks, including customer service operations. “If there is a ‘SaaS-pocalypse’, it may be eaten by the ‘SaaS-quatch’ because there are a lot of companies using a lot of SaaS because it just got better with agents,” he remarked, alluding to how essential SaaS offerings remain in the evolving technological landscape.
Salesforce’s fourth-quarter earnings presented a mixed picture, revealing a 12 percent increase in revenue to $11.2 billion for the three months ended January 31, aligning with market expectations. However, operating profits fell to $1.9 billion, falling short of the anticipated $2.1 billion. In a positive turn, Salesforce noted that its AI initiatives, including Agentforce and Data 360, generated annual recurring revenues of $2.9 billion, a notable increase from the previous quarter’s figure of $1.4 billion. This included $1.1 billion from Informatica, a cloud data business acquired for $8 billion in late 2025.
The firm is currently grappling with developing a pricing model for its forthcoming AI services. Traditionally following a “per-seat” licensing approach, Salesforce is evaluating whether to shift toward a consumption-based model, similar to strategies employed by rival AI startups. Benioff maintained that a user-based pricing structure offers clients predictability, contrasting it with the outcome-based pricing advocated by some competitors.
In a bid to bolster shareholder confidence, Salesforce announced a boost to its dividend along with a new $50 billion share buyback program, following a successful $23 billion repurchase last year.
However, Benioff’s recent comments regarding immigration and law enforcement have drawn significant backlash from Salesforce employees. His remarks during a recent event in Las Vegas, where he acknowledged the presence of Immigration and Customs Enforcement agents, sparked criticism, especially in light of his previous invitation to former President Donald Trump to deploy the National Guard in San Francisco to address crime and homelessness.
Senior executives, including Slack’s general manager Rob Seaman, have publicly distanced themselves from Benioff’s remarks. Seaman voiced his inability to defend Benioff’s statements, emphasizing that they do not reflect his personal values and resonating with similar sentiments among the workforce. Following these developments, several high-profile departures, including Slack CEO Denise Dresser’s move to OpenAI, have raised further questions about the company’s internal dynamics amidst shifting leadership and values.
