A bad year just got worse for Salesforce.

Following a disappointing revenue forecast in its quarterly earnings report late Wednesday, Salesforce’s stock slumped 8%, bringing its decline for 2025 to 28%. That’s the worst performance in large-cap tech.

Revenue increased 10% in the fiscal second quarter from a year earlier, cracking double-digit growth for the first time since early 2024. Sales of $10.24 billion topped the average analyst estimate of $10.14 billion, and earnings per share also exceeded expectations.

However, for the fiscal third quarter, Salesforce said revenue will be $10.24 billion to $10.29 billion, while analysts were expecting $10.29 billion, according to LSEG.

Salesforce regularly touts its investments in artificial intelligence and the advancements in its software as a service, or SaaS, but the company hasn’t been lifted by the AI boom in the same way as many of its tech peers — particularly those focused on infrastructure.

There’s also a concern on Wall Street that AI is going to eat away at much of the software sector.

“While the investor community oozes angst over the future of SaaS, the here and now from Salesforce, while impressive at scale, is not enough to reshape the narrative,” wrote analysts at KeyBanc Capital Markets, in a report on Wednesday. The analysts have a buy rating on the stock.

Salesforce is dealing with challenges selling marketing and commerce products, Robin Washington, the company’s president and chief operating and financial officer, said on a conference call with analysts.

In its earnings release, Salesforce said it closed over 12,500 total deals for Agentforce, which can automate the handling of customer service questions. That includes 6,000 paid deals. The company said that over 40% of bookings for Agentforce and its data cloud came from existing customers.

CEO Marc Benioff maintained his optimistic tone, downplaying concerns about the AI threat to software and telling analysts on the earnings call that “we are seeing one of the greatest transformations” in the space.

“To hear some of this nonsense that’s out there in social media or in other places, and people say the craziest things, but it’s not grounded in any customer truth,” Benioff said.

Salesforce kept its full-year revenue outlook but now sees higher earnings. The company is targeting $11.33 to $11.37 in adjusted earnings per share on $41.1 billion to $41.3 billion in revenue.

WATCH: Cramer interviews Salesforce CEO Marc Benioff