Salesforce Stock Sinks on Revenue Miss, Weak Outlook
Key Takeaways
- Salesforce reported rising revenue and net income in the first fiscal quarter of 2025 from the year-ago period, though its revenue missed analysts’ estimates.
- Salesforce’s guidance for the second quarter was also weaker than expected.
- Salesforce maintained its previously announced full-year outlook.
- Shares of Salesforce fell more than 17% in extended trading Wednesday following the release.
Salesforce (CRM) shares tumbled over 17% in extended trading Wednesday after the customer relationship management (CRM) company reported fiscal first-quarter revenue below analysts’ estimates and provided weaker-than-expected guidance.
Salesforce reported revenue of $9.13 billion for the fiscal first quarter of 2025, up 11% from the year-ago period, and below analysts’ expectations, according to estimates compiled by Visible Alpha.
Net income came in at $1.53 billion or $1.56 per share, versus $199 million or 20 cents per share reported in the same period a year prior, beating analysts’ projections.
| Q1 FY25 | Analyst Estimates for Q1 FY25 | Q1 FY24 | |
| Revenue | $9.13 billion | $9.15 billion | $8.25 billion |
| Diluted Earnings Per Share | $1.56 | $1.45 | 20 cents |
| Net Income | $1.53 billion | $1.44 billion | $199 million |
The company projected second-quarter revenue to be between $9.2 billion and $9.25 billion, below the $9.35 billion analysts expected. Salesforce maintained its previously announced full-year revenue guidance of between $37.7 billion to $38 billion.
Salesforce CEO Marc Benioff highlighted the company’s position to gain from the artificial intelligence (AI) era, saying it’s “the beginning of a massive opportunity for our customers to connect with their customers in a whole new way with AI.”
Salesforce shares dropped 17.3% to $224.55 in extending trading Wednesday following the release.
