Marc Benioff said engineering headcount has been flat for two years while hiring focuses solely on sales roles to boost AI efficiency and margins after 4,000 support job cuts. Salesforce posted $3.88 adjusted EPS versus $3.12 expected, 13% revenue rise to $11.13bn and FY revenue midpoint at $46.05bn below consensus.
Marc Benioff announced that Salesforce’s engineering headcount has remained flat for the past two years, with new hiring directed exclusively to sales teams. This strategy aims to leverage AI-driven coding agents for development efficiencies while scaling human-led sales efforts and improving profit margins following the elimination of 4,000 customer support positions.
Salesforce reported adjusted earnings of $3.88 per share, beating the $3.12 consensus, on revenue of $11.13 billion, up 13% year-over-year. The company executed $27 billion in share repurchases, reducing its share count by 10%, underscoring management’s confidence in cash flow generation.
For the full year, Salesforce set revenue guidance midpoint at $46.05 billion, just below analysts’ $46.12 billion estimate. Quarterly revenue outlook of $11.27 billion to $11.35 billion also came in marginally under the $11.36 billion Street forecast, tempering further upside in the stock.
