Salesforce Beats With $11.13 Billion Revenue as Shares Slip 1% on AI Doubts
Updated
Updated · CNBC · May 27
Salesforce Beats With $11.13 Billion Revenue as Shares Slip 1% on AI Doubts
3 articles · Updated · CNBC · May 27
Summary
Salesforce posted fiscal Q1 revenue of $11.13 billion and adjusted EPS of $3.87, topping estimates, but the stock still fell about 1% after hours to roughly $176.
Investor caution centered on growth quality: Q2 revenue guidance of about $11.31 billion and full-year revenue of about $46.05 billion were slightly light, while cRPO rose 13% and total RPO 11%.
Agentforce offered a brighter spot, closing a record 98 deals as annual recurring revenue reached $1.2 billion, up 205% from a year earlier; with Data 360, related ARR hit $3.4 billion.
Margins beat expectations and Salesforce lifted full-year adjusted EPS guidance to about $14.09, but it cut its GAAP margin outlook and lowered free-cash-flow growth after issuing $25 billion of debt to fund buybacks.
The company repurchased $27.1 billion of stock in the quarter, underscoring management's push to defend a share price still down about 33% this year amid fears AI could erode traditional software demand.