Salesforce's AI Revolution Feels Like A Fizzle

Core Viewpoint - Salesforce's CRM AI initiatives are underperforming, particularly in light of its stock performance in 2025 and recent guidance [1] Financial Performance - Salesforce's Q2 revenue reached $10.24 billion, a 10% year-over-year increase, slightly exceeding analyst expectations [3] - Adjusted earnings per share (EPS) for Q2 were $2.91, beating estimates by 4.7% [3] - For Q3, Salesforce guided revenue between $10.24 billion and $10.29 billion, slightly below the $10.29 billion estimate, and adjusted EPS guidance is set at $2.84 to $2.86, compared to the $2.85 estimate [4] Stock Performance - Salesforce's stock has declined 28% year-to-date, underperforming competitors like SAP, Microsoft, and Oracle, which have shown strong gains in 2025 [2] - Following the quarterly results, several analysts lowered their price targets for Salesforce, contributing to further stock declines [4] AI Investments - Salesforce's AI investments are described as "multi-billion" dollar initiatives for 2025, particularly associated with the Agentforce and Einstein platforms, though specific figures for total AI spending have not been disclosed [5] - The company has integrated AI features across its platform but acknowledges that it will take time for these investments to yield measurable returns, as indicated by the recent revenue growth [6] Market Sentiment - Analysts and investors are urging Salesforce to demonstrate results from its significant AI investments in upcoming quarters [6] - The overall sentiment around Salesforce's AI revolution is waning, with revenue growth stagnating and AI innovations not yet making a significant impact on profitability [7]