(Bloomberg) -- Salesforce Inc. gave a fiscal-year revenue forecast that fell short of estimates, dimming optimism for the company’s new artificial intelligence product.

Revenue will be $40.5 billion to $40.9 billion in the year ending January 2026, the San Francisco-based company said Wednesday in a statement. Analysts, on average, estimated $41.5 billion, according to data compiled by Bloomberg. Adjusted operating margin will be about 34% compared with an average analyst estimate of 33.9%.

The shares dropped about 5% in extended trading after closing at $307.33 in New York. The stock had gained 2.3% over the past 12 months, trailing many software peers.

The top maker of customer management software has focused on pushing “Agentforce,” which is meant to complete tasks such as customer service without needing direction from a person. Salesforce launched the product in October, and faces competition from software companies such as Microsoft Corp. and ServiceNow Inc., which are pursuing similar visions.

Investors have flagged some uncertainty from changes in the company’s rank of top executives. Longtime Chief Financial Officer Amy Weaver and Chief Operating Officer Brian Millham are each leaving their roles. Robin Washington, a technology industry veteran who has been on Salesforce’s board since 2013, will assume a newly created role of chief financial and operations officer.

Earlier this month, Salesforce cut more than 1,000 roles as it allocates spending toward AI-focused initiatives. It also awarded a $2.5 billion cloud contract to Alphabet Inc.’s Google, expanding infrastructure beyond its traditional partner of Amazon.com Inc.’s Amazon Web Services. 

©2025 Bloomberg L.P.