What You Need To Know Ahead of Salesforce’s Earnings Report
Key Takeaways
- Salesforce is set to release its first-quarter earnings report for fiscal 2025 after the bell on Wednesday.
- The customer relationship management (CRM) company is expected to report that revenue and net income gained from the year-ago period but fell from the previous quarter.
- Investors are likely to be watching for sustained growth in Salesforce’s data cloud segment.
- Salesforce also could provide updates on how artificial intelligence is affecting its business.
Salesforce (CRM) is set to report earnings for the first quarter of its 2025 fiscal year after the bell on Wednesday, with investors likely to be watching for growth in the company’s data cloud segment and any updates related to artificial intelligence (AI).
Analysts project Salesforce’s revenue to be $9.15 billion for the first quarter of fiscal 2025, down from the previous quarter but up from $8.25 billion in the same period in 2024, according to estimates compiled by Visible Alpha.
Net income is expected to be $1.44 billion, a slight decline sequentially but up from $199 million in the first quarter of fiscal 2024. Analysts anticipate diluted earnings per share (EPS) of $1.45, compared with 20 cents in the same period a year earlier. Seasonally, the fiscal fourth quarter is Salesforce’s strongest, the company’s Securities and Exchange Commission (SEC) filings indicated.
| Analyst Estimates for Q1 FY 2025 | Q4 FY 2024 | Q1 FY 2024 | |
| Revenue | $9.15 billion | $9.29 billion | $8.25 billion |
| Diluted Earnings Per Share | $1.45 | $1.47 | 20 cents |
| Net Income | $1.44 billion | $1.45 billion | $199 million |
Key Metric: Data Cloud Growth
Salesforce’s data cloud segment has come into focus as enterprise customers work to leverage their data in the AI era.
The company reported in February that its data cloud segment was approaching $400 million in annual recurring revenue, nearly doubling year-over-year.
Salesforce Chief Operating Officer (COO) Brian Millham said it was “the beginning of a new innovation cycle that will spark a massive software buying cycle over the coming years, and Salesforce is leading the way.”
Investors will likely be watching for continued strong growth in Salesforce’s data cloud business as enterprise customers integrate AI. Bank of America Securities analysts said that “the AI product cycle is ramping with Data Cloud.”
Business Spotlight: AI Boost With Einstein 1
Salesforce could be well-positioned to gain from booming demand for AI, offering the Einstein 1 platform that integrates AI into its offerings.
Einstein 1 isn’t expected to have a significant impact on revenue in the 2025 fiscal year, but Salesforce may provide updates to investors about customer adoption and share insights into when the platform will begin contributing to the company’s bottom line.
Citi analysts said they would “like to see more signs of a strengthening demand environment and/or better Data Cloud/GenAI momentum” for Salesforce.
Salesforce shares have gained close to 3% since the start of the year, at $270.83 as of 11 a.m. ET Tuesday.
