Salesforce beats on earnings and revenue but full-year guidance comes in light

Salesforce reported impressive quarterly results that exceeded expectations, though the cloud software giant's full-year forecast fell short of Wall Street's predictions. In after-hours trading, the company's stock remained relatively stable. During the quarter ending April 30, Salesforce saw a 13% increase in revenue compared to the previous year, as stated in their official report. The net income for this period climbed to $2.11 billion, translating to $2.42 per share, an improvement from $1.54 billion or $1.59 per share a year prior. The adjusted net income, which excludes stock-based compensation, taxes, and amortization of intangible assets, reflects a robust financial position. Looking ahead, Salesforce anticipates adjusted earnings per share between $3.25 and $3.27, alongside projected revenues of $11.27 billion to $11.35 billion for the upcoming quarter. This falls slightly short of analysts' expectations, who predicted $3.25 per share with $11.36 billion in revenue. For the full year, the company has raised its forecast to $14.06 to $14.12 in adjusted earnings per share and revenues of $45.9 billion to $46.2 billion. However, the midpoint of this revenue estimate, at $46.05 billion, suggests roughly 11% growth, which is below the $13.22 per share and $46.12 billion analysts were hoping for. Investors have expressed concerns regarding the impact of artificial intelligence on the company's growth, contributing to a 33% decline in Salesforce's stock since the start of 2026, while the S&P 500 index has gained around 10%. Salesforce continues to expand through acquisitions and the introduction of its Agentforce AI tools, which automate sales and customer service tasks. Subscription and support revenue from these applications, including Slack, reached $6.91 billion, marking a 9% increase from the previous year. Other subscription revenues, including those from the Data 360 platform and Informatica—acquired for $9.6 billion—grew by 25%, totaling $3.68 billion. The annualized revenue from Agentforce has now surpassed $1 billion for the first time, reaching $1.2 billion, up 205% year over year. The company's remaining performance obligation, which indicates contracted revenue yet to be recognized, stood at $67.9 billion at the quarter's end, slightly below the $68.61 billion anticipated by analysts. In addition to its financial updates, Salesforce has been busy acquiring companies like commerce startup Cimulate and sales startup Momentum, with terms undisclosed. Notably, the U.S. Veterans Health Administration is set to implement an AI agent system within Slack. Company executives are scheduled to discuss these results in a conference call at 5 p.m. ET.