Salesforce shares dropped 16% after reporting its lowest quarterly revenue growth forecast on record.

Salesforce shares dropped 16% after the company reported its lowest quarterly revenue growth forecast on record, raising concerns about the impact of high interest rates and rival AI offerings on demand. This marks the first time Salesforce has reported quarterly revenue below expectations since 2006. The company's AI-focused data cloud business contributed to 25% of the deals valued above $1 million in Q1, but has not yet shown significant impact on top-line results.