sales force reported better-than-expected quarterly results on Wednesday, but the cloud software vendor’s full-year outlook was slightly below Wall Street expectations.
The stock price was little changed in extended trading.
The company’s performance against LSEG Consensus is as follows:
Earnings per share: $3.88 adjusted vs. $3.12 expected Revenue: $11.13 billion vs. $11.05 billion expected
Sales for the quarter ended April 30 increased 13% compared to the same period last year, the company said in a statement.
Net income was $2.11 billion, or $2.42 per share, up from $1.54 billion, or $1.59 per share, in the year-ago period. Adjusted net income excludes the effects of stock-based compensation, income taxes and amortization of intangible assets.
For the quarter, Salesforce expected adjusted earnings per share of $3.25 to $3.27 on revenue of $11.27 billion to $11.35 billion. Analysts polled by LSEG had expected earnings of $3.25 per share and revenue of $11.36 billion.
The company raised its full-year forecast to adjusted earnings per share of $14.06 to $14.12 and sales of $45.9 billion to $46.2 billion. The midpoint of the revenue range, $46.05 billion, represents approximately 11% growth. Analysts surveyed by LSEG had expected sales of $13.22 per share and revenue of $46.12 billion.
Robin Washington, Salesforce’s chief operating financial officer, said on the company’s earnings call that continued challenges in marketing and commerce, weak performance in Tableau’s reservations and renewals, and increased volatility in license revenue following the acquisition of data management company Informatica were factors in this guidance.
Salesforce has come under heavy fire from investors over concerns that its artificial intelligence models will hurt the growth prospects of the company and other software developers. As of Wednesday’s close, Salesforce stock is down 33% so far in 2026, while the S&P 500 is up about 10%.
Salesforce has expanded through the sale of its Agentforce AI tool, which can automatically close deals and run certain sales and customer service processes.
The company said subscription and support revenue from Sales, Service, Marketing, Commerce and Agentforce apps, including Slack, totaled $6.91 billion, an increase of nearly 9% year over year. Data 360, headless platform, and other subscription and support revenue increased 25% to $3.68 billion, of which $428 million came from Informatica, which Salesforce acquired for $9.6 billion in November.
Washington said the Tableau and commerce categories were weak this quarter.
Annual revenue from Agentforce reached $1.2 billion, an increase of 205% year over year. This number exceeded $1 billion for the first time.
Remaining performance obligations not recognized in contract revenue were $67.9 billion at quarter end. The analyst consensus compiled by Street Accounts was $68.61 billion.
During the quarter, Salesforce acquired commerce startup Cimulate and sales startup Momentum, both for undisclosed terms, and announced that the U.S. Veterans Health Administration would adopt Slack’s AI agent system.
Salesforce’s headcount has grown primarily in sales, said Marc Benioff, the company’s co-founder and CEO.
“I think everyone understands that what we’re doing here with you is selling it and communicating it. Agents aren’t exactly doing that,” he said.
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