Salesforce Stock Sinks on Revenue Miss, Weak Outlook
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Key TakeawaysSalesforce reported rising revenue and net income in the first fiscal quarter of 2025 from the year-ago period, though its revenue missed analysts' estimates.Salesforce's guidance for the second quarter was also weaker than expected.Salesforce maintained its previously announced full-year outlook.Shares of Salesforce fell more than 17% in extended trading Wednesday following the release.
Salesforce (CRM) shares tumbled over 17% in extended trading Wednesday after the customer relationship management (CRM) company reported fiscal first-quarter revenue below analysts' estimates and provided weaker-than-expected guidance.Salesforce reported revenue of $9.13 billion for the fiscal first quarter of 2025, up 11% from the year-ago period, and below analysts' expectations, according to estimates compiled by Visible Alpha.Net income came in at $1.53 billion or $1.56 per share, versus $199 million or 20 cents per share reported in the same period a year prior, beating analysts' projections.
Q1 FY25
Analyst Estimates for Q1 FY25
Q1 FY24
Revenue
$9.13 billion
$9.15 billion
$8.25 billion
Diluted Earnings Per Share
$1.56
$1.45
20 cents
Net Income
$1.53 billion
$1.44 billion
$199 million
The company projected second-quarter revenue to be between $9.2 billion and $9.25 billion, below the $9.35 billion analysts expected. Salesforce maintained its previously announced full-year revenue guidance of between $37.7 billion to $38 billion.Salesforce CEO Marc Benioff highlighted the company's position to gain from the artificial intelligence (AI) era, saying it's "the beginning of a massive opportunity for our customers to connect with their customers in a whole new way with AI."Salesforce shares dropped 17.3% to $224.55 in extending trading Wednesday following the release. Read the original article on Investopedia.
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