TLDR
- Salesforce reports earnings Wednesday after market hours with analysts expecting $10.14 billion revenue (8.7% growth)
- CEO Marc Benioff cut 4,000 customer support jobs (44% of support workforce) due to AI automation
- Company reduced support team from 9,000 to 5,000 employees as AI handles more tasks
- Salesforce eliminated 100 million uncontacted sales leads backlog using AI agents
- Stock trading at $256.44 with analyst price target of $344.62
Salesforce will report quarterly earnings this Wednesday after market hours. The company faces investor scrutiny following recent workforce reductions driven by artificial intelligence implementation.
Analysts expect revenue of $10.14 billion for the quarter. This represents 8.7% year-over-year growth. The forecast aligns with the company’s historical performance patterns.
Last quarter, Salesforce beat revenue expectations by 0.8%. The company reported $9.83 billion in revenue, up 7.6% from the previous year. Adjusted earnings per share are projected at $2.78 for the upcoming report.
Most analysts covering Salesforce have maintained their estimates over the past month. This suggests confidence in the company’s current trajectory. However, Salesforce has missed Wall Street revenue estimates twice in the last two years.
CEO Marc Benioff recently confirmed the elimination of 4,000 customer support positions. The cuts reduced the support workforce from 9,000 to 5,000 employees. This represents a 44% reduction in the support division.
Benioff explained the decision during an appearance on the Logan Bartlett Podcast. He stated that AI systems now handle tasks previously performed by human workers. The company needed “fewer heads” due to automation capabilities.
AI Integration Reshapes Operations
The job cuts mark a shift from Benioff’s previous stance on AI and employment. In July, he told Fortune that artificial intelligence would enhance rather than replace workers. He emphasized keeping “the human in the loop” due to AI accuracy concerns.
Salesforce has deployed AI beyond customer support functions. The company eliminated a backlog of over 100 million uncontacted sales leads accumulated over 26 years. AI-driven sales agents now contact every person who reaches out to the company.
The company introduced an “omnichannel supervisor” system. This oversees collaboration between human employees and AI agents. Tasks requiring human judgment get escalated appropriately through this system.
Benioff indicated in July that Salesforce had no plans to expand engineering, service, or legal staff. Instead, the company focused on growing sales teams to help customers integrate AI tools.
Market Position and Peer Performance
Salesforce stock trades at $256.44 with an average analyst price target of $344.62. The stock has gained 1.6% over the past month. Sales and marketing software segment stocks rose 3.2% on average during the same period.
Peer companies have already reported second-quarter results. HubSpot delivered 19.4% year-over-year revenue growth, beating expectations by 2.9%. Freshworks reported 17.5% revenue growth, also exceeding estimates by 2.9%.
Both peer companies saw stock declines following earnings releases. HubSpot dropped 5.8% while Freshworks fell 2.5%. This pattern suggests investor caution despite strong financial performance.
The workforce reduction affects approximately 5% of Salesforce’s global staff. The company employed more than 76,000 people at the start of 2025. The cuts demonstrate how quickly AI is changing corporate staffing strategies.
Salesforce’s AI implementation extends across multiple business functions. The technology handles customer interactions, sales lead processing, and operational oversight tasks. This comprehensive approach reflects the company’s commitment to automation-driven efficiency.
The earnings report will provide insight into how AI integration affects financial performance. Revenue growth expectations remain steady despite operational changes. Investors will watch for commentary on future AI investments and workforce planning.
Benioff’s recent statements contrast with his earlier position on AI’s role in employment. The rapid implementation of job-replacing technology shows how quickly business strategies can evolve as AI capabilities improve.
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