Salesforce, the leading sales and customer service software giant, saw its shares slump 3% despite beating fiscal first-quarter estimates and raising its full-year outlook due to artificial intelligence tailwinds. The company reported adjusted earnings per share of $2.58, exceeding analyst expectations of $2.54.
Despite a slight miss on current remaining performance obligation growth for the second quarter, Salesforce’s Q1 results showed a stable demand environment with continued strength in its new product cycle, according to Citi analyst Tyler Radke. The company announced plans to buy data management company Informatica for $8 billion, which is expected to boost its AI offerings.
Analysts at RBC Capital Markets downgraded shares to sector perform from an outperform, citing execution risks and innovation concerns related to the acquisition. However, Morgan Stanley’s Keith Weiss called the results “better than feared” against a turbulent macroeconomic backdrop, noting that Salesforce delivered an in-line quarter with no visible effect from macroeconomic factors.
The company reported flat year-over-year net income of $1.54 billion and adjusted earnings per share of $2.58. Revenue grew nearly 7.6% to $9.83 billion, beating estimates of $9.75 billion. Salesforce now expects adjusted EPS between $11.27 and $11.33 for the full year and revenue of $41.0 billion to $41.3 billion.
Source: https://www.cnbc.com/2025/05/29/salesforce-stock-earnings.html