Salesforce reported stronger‑than‑expected results for the quarter ended April 30, with revenue up 13.3% year over year to $11.13 billion, surpassing the $11.05 billion forecast, and adjusted earnings per share of $3.87, topping the consensus by $0.76. Adjusted EPS rose 50% from a year earlier.
Despite the beat, the stock slipped about 1% in after‑hours trading to roughly $176, leaving it down roughly 33% for the year and trading just above its 52‑week low of $164.96. Investors appear skeptical that the company can sustain the momentum, awaiting clearer evidence of accelerated revenue growth and expanding margins.
Management reaffirmed its outlook that revenue growth will pick up in the second half of the fiscal year. The company highlighted its AI‑powered platform, Agentforce, which closed a record 98 deals in the quarter, bringing Agentforce’s annual recurring revenue to $1.2 billion—a 205% increase from the prior quarter. Notable customers include LVMH, Chobani, and the U.S. Air Force. Combined with the Data 360 cloud portfolio, total ARR now stands at $3.4 billion, up 200% year over year.
However, the legacy business remains sluggish, and the modest rise in remaining performance obligations—cRPO up 13% and RPO up 11% year over year—does little to change the narrative. Margins improved across both GAAP and non‑GAAP measures, beating street expectations, yet the full‑year GAAP outlook was trimmed, tempering enthusiasm.
In response to the share‑price pressure, Salesforce accelerated its share‑repurchase program, launching a $25 billion accelerated buyback—the largest in its history—and repurchased $27.1 billion of stock in the quarter, funded in part by new debt. While the buyback lifts EPS in the short term by reducing share count, analysts remain cautious about its long‑term impact.
Analyst Jim Cramer maintained his “Hold” rating with a $215 price target, noting that Salesforce remains a core enterprise‑software platform despite AI‑related concerns. The firm continues to face competitive pressure from SAP, Microsoft, and HubSpot.
Guidance for the next quarter projects revenue between $11.27 billion and $11.35 billion, slightly below consensus, and adjusted EPS of $3.25‑$3.27. For the full fiscal year, Salesforce forecasts revenue of $45.9 billion‑$46.2 billion, representing 10%‑11% growth, and adjusted EPS of $14.06‑$14.12, above analyst expectations. GAAP margin guidance was revised to 20.6% from 20.9%, while non‑GAAP margin remains at 34.3%.