Quarterly figures from SaaS players contradict AI doubts

"Subscription & Support, which generates 95.5 percent of the company's total revenue with $10.7 billion, saw 13 percent growth on an annual basis. Each segment within this division is now called Agentforce, a clear move to place AI even more centrally in external communications. However, expectations for the coming year ($45.8 to $46.2 billion) are on the low side compared to the $46.06 billion predicted by analysts."

"This reflects investors' doubts about SaaS solutions. Shareholders seem to be overwhelmingly uncertain about business SaaS platforms, assuming that AI may reduce their market. After all, why take out an expensive subscription to a CRM, ERP, or HRM solution when your employees can also request information from such systems via a chatbot?"

Salesforce exceeded analyst expectations with $10.7 billion in Subscription & Support revenue, representing 13 percent annual growth, though forward guidance of $45.8-$46.2 billion fell short of analyst predictions at $46.06 billion. The company rebranded its segments under Agentforce to emphasize AI integration. Workday narrowly met quarterly revenue expectations at $2.53 billion but experienced a 10 percent stock decline. Both companies face persistent investor skepticism about SaaS valuations, with shareholders questioning whether AI-powered chatbots and autonomous systems will reduce demand for expensive enterprise subscriptions. Stock prices remain significantly below year-ago levels despite recent five-day recoveries.

Read at Techzine Global