Salesforce, a cloud-based software company, reported mixed fourth-quarter 2024 financial results. The San Francisco-based firm announced earnings per share (EPS) of $2.78, beating analyst estimates of $2.61. However, revenue came in slightly below forecasts at $10 billion, missing Wall Street’s target of $10.04 billion.
Salesforce has been investing heavily in artificial intelligence (AI), adding the technology to its cloud-computing software products and developing “AI agents” that can perform digital tasks on their own. Some analysts have raised concerns about the costs of this investment and whether Salesforce will see a sufficient return.
Looking ahead, Salesforce provided guidance for the current quarter, expecting revenue between $9.71 billion and $9.76 billion, below analyst estimates. For the full year, it sees revenue at $40.50 billion to $40.90 billion, also short of expectations.
The company’s earnings per share (EPS) guidance was also lower than expected, ranging from $11.09 to $11.17. This mixed performance led to a decline in Salesforce stock prices in after-hours trading, with the stock down 8% so far this year.
Despite this, analysts remain cautiously optimistic about Salesforce’s prospects, with a consensus Moderate Buy rating among 41 Wall Street analysts. The average price target suggests an upside of 28.13%. However, these ratings are likely to change as the company’s financial results continue to unfold.
Source: https://www.tipranks.com/news/crm-earnings-salesforce-stock-sinks-on-mixed-financial-results