Salesforce Earnings Miss Expectations, Shares Drop

Published 1 days agoCRM

Salesforce Earnings Miss Expectations, Shares Drop

Salesforce recently reported a 7.6% increase in revenue to $9.99 billion for the quarter ending January 31, 2025. While the adjusted earnings per share of $2.78 exceeded estimates by 17 cents, the revenue fell slightly short of analyst expectations. This mixed earnings report has led to a varied response from investors and analysts, as noted by Forbes.

Salesforce's continuing integration of AI, particularly through its Agentforce platform, has attracted over 3,000 paid deals since October. However, the slower-than-expected monetization of Agentforce is causing concern, with significant contributions from AI expected by fiscal 2027. Following the release of these results, Salesforce's stock saw a substantial decline, with shares dropping over 17% in extended trading, as reported by Investopedia.

Despite these challenges, Salesforce remains optimistic, maintaining its full-year revenue guidance between $40.5 and $40.9 billion. This indicates the company's confidence in its strategic direction, even as some analysts have lowered their price targets due to concerns over growth and AI investments. Reuters reported that these factors continue to spotlight challenges in AI monetization, affecting current investor sentiment.

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