Salesforce Gives Strong Forecast, Snowflake Falls Postmarket, Microsoft Slips
Dec 4, 2025
Salesforce surprises with a revenue forecast that tops analyst expectations, boosting its stock despite earlier concerns about AI disruption. Meanwhile, Snowflake faces backlash as its operating margin outlook disappoints investors, sparking worries about the profitability of AI tools. Microsoft's shares slide after a report reveals it has cut quotas due to slower AI marketplace sales, highlighting the market's sensitivity to shifts in AI spending. The episode explores how these factors shape investor sentiment in the tech landscape.
02:50
forum Ask episode
web_stories AI Snips
view_agenda Chapters
auto_awesome Transcript
info_circle Episode notes
insights INSIGHT
Salesforce Beats Revenue Forecast
Salesforce topped revenue expectations and signaled stronger AI-driven demand for its tools.
The company reported rising bookings and 9,500 deals for its AI Agent Force, sparking a 5% after-hours gain.
volunteer_activism ADVICE
Read Deal Counts With Caution
Watch booking growth and deal counts to judge enterprise AI adoption beyond experimentation.
Treat early deployment numbers cautiously, since TD Cowan warns many deals remain experimental.
insights INSIGHT
Snowflake's Margin Warning
Snowflake warned on operating margins, raising investor doubts about AI-related profitability.
Adjusted operating margin guidance missed estimates and shares fell as much as 8% after hours.
Get the Snipd Podcast app to discover more snips from this episode
- Salesforce (CRM) gave an outlook for revenue in the current period that topped analysts’ estimates, suggesting the software company is persuading customers to buy its AI tools. Revenue will be $11.1 billion to $11.2 billion in the period ending in January, the company said Wednesday in a statement. Analysts, on average, estimated $10.9 billion. Current remaining performance obligations, a measure of bookings, will increase about 15%, compared with analysts’ estimates of a 10% rise. The shares gained about 5% in extended trading after closing at $238.72 in New York. The stock has dropped 29% this year through Wednesday’s close as investors have grown concerned about AI disrupting incumbent application software makers.
- Snowflake (SNOW) gave an outlook for operating margin that fell short of analysts’ estimates, raising concerns among investors about the profitability of new AI-based tools. Adjusted operating income margin will be about 7% in the period ending in January, the company said Wednesday in a statement. Analysts, on average, projected 8.5%, according to data compiled by Bloomberg. Product revenue will be about $1.2 billion, compared with an average estimate of $1.19 billion. The shares fell as much as 7.9% in extended trading after closing at $265 in New York. The stock, which had jumped 72% this year, pared some of its losses after the Anthropic partnership was announced.
- Microsoft (MSFT) shares slid after the Information reported that the software maker has lowered expectations for getting business customers to spend money on the cloud unit’s marketplace for artificial intelligence models and agents. Several divisions at Microsoft have lowered quotas for how much salespeople are supposed to increase sales of certain AI products after many of them missed their targets in the fiscal year that ended in June, the Information reported, citing two salespeople in the Azure cloud division. The unusual shift reflects how Microsoft is compensating for companies’ resistance to pay more for AI, according to the report.
Stock Movers