Salesforce Growth Stalls Despite AI Push
**Salesforce Growth Stalls Despite AI Push**
By Jon Victor
9 hours ago
Source: The Information
Salesforce on Wednesday said revenue rose 8% to $10 billion in the January quarter, mirroring the growth it posted in the prior two fiscal quarters. The result highlights the challenges facing the enterprise software vendor as it reorients its business around selling artificial intelligence.
Salesforce projected revenue growth of 7% to 8% in the current fiscal year, which ends January 2026. Shares fell around 2% after normal trading hours and have been flat over the past year.
Salesforce has been leaning on AI to boost its fast-growing data storage business, which is generating revenue at a $900 million annual run rate, the company said. That figure implies $75 million in monthly revenue. Salesforce primarily makes revenue from customer relationship management software and other business apps.
Revenue for the January quarter came in at the midpoint of the range the company forecast in December. Free cash flow rose 17.2% to $3.8 billion, compared with a 30.2% year-over-year increase in free cash flow in the prior fiscal quarter.