Salesforce misses on revenue, issues disappointing guidance

Salesforce reported weaker-than-expected quarterly revenue on Wednesday and issued a forecast that fell short of analysts’ estimates. The stock price slipped 4% in extended trading.

Here’s how the company did compared with LSEG consensus:

• Earnings per share: $2.78 adjusted vs. $2.61 expected
• Revenue: $9.99 billion vs. $10.04 billion expected

Revenue increased 7.6% from a year ago in the quarter that ended Jan. 31, according to a statement. Net income rose to $1.71 billion, or $1.75 per share, from $1.45 billion, or $1.47 per share, a year earlier.

The top category of subscription and support revenue was service, at $2.33 billion. The figure was up about 8% and below the $2.37 billion consensus among analysts surveyed by Visible Alpha. In the sales category, Salesforce generated $2.13 billion in revenue, up 8% and also trailing Visible Alpha’s consensus of $2.17 billion.

During the quarter, the company introduced its second-generation Agentforce artificial intelligence agent technology, which answers employee questions in the Slack team communications app.

Salesforce said it has completed more than 3,000 paid deals involving Agentforce since October. Agentforce has gotten involved in 380,000 conversations through Salesforce’s help website, with humans getting involved in 2% of cases, according to the statement.

“A lot of other vendors are talking about their agent capabilities, but few are able to show that they’ve got this really running at scale,” co-founder and CEO Marc Benioff said on a conference call with analysts.

Agentforce will make a modest contribution to revenue in fiscal 2026, with a larger effect in the following year, said Amy Weaver, Salesforce’s outgoing finance chief.

Benioff referred to a forthcoming product in the area of information technology service management, where ServiceNow operates.

The U.S. Department of Government Efficiency is using Slack, Benioff said.

“We’ll work closely with the government,” he said. “We’ll do anything we can to help them succeed.”

The company called for $2.53 to $2.55 in adjusted earnings per share for the fiscal first quarter, with $9.71 billion to $9.76 billion in revenue. Analysts polled by LSEG had anticipated adjusted earnings of $2.61 per share, with $9.9 billion in revenue.

For fiscal 2026, Salesforce is targeting $11.09 to $11.17 in adjusted earnings per share on $40.5 billion to $40.9 billion in revenue, implying 7.4% growth. The LSEG consensus was for adjusted earnings per share of $11.18 on $41.35 billion in revenue.

As of Wednesday’s close, Salesforce shares are down about 8% so far in 2025, while the S&P 500 index has gained about 1%.