Salesforce, the leading software giant, is set to release its second-quarter earnings report, and investors are eagerly awaiting the results. While revenue and operating margin figures are important, the spotlight will be on the company’s investments in artificial intelligence (AI).
Salesforce has been riding the AI wave, with its stock soaring over 61% this year. The company’s foray into AI has captivated investors who are looking for concrete evidence of its potential. The big question on everyone’s mind is whether AI is just a passing trend or the real deal.
CEO of Tematica Research, Chris Versace, expressed investors’ sentiment, stating, “The key here is to go from: Is this the new new thing or is it the real real thing? That’s really what investors want to understand.” Expectations are high as investors hope to see tangible results from Salesforce’s substantial investments in AI.
While revenue figures are crucial, it’s also important to keep an eye on the breakdown of Salesforce’s revenue. The company categorizes its revenue into sales and subscriptions, providing insights into the various sources of its income.
Analysts have differing opinions on Salesforce’s upcoming earnings report. Dan Ives from Wedbush noted, “overall we saw stronger cross-sell activity this quarter…and this could fuel some major collaboration deals.” Brent Thill from Jefferies, on the other hand, mentioned, “expectations are low for F2Q due to mixed demand checks.”
Salesforce’s Q2 earnings report is also anticipated for commentary on organizational changes and its AI initiatives. The company held an AI event in June that received mixed reviews, and investors are eager to gain insight into the progress made since then.
As investors eagerly await Salesforce’s earnings report, all eyes will be on the company’s AI investments and their potential impact on future growth.