Salesforce Q1 Revenue Hits $11.13B but Q2 Forecast Falls $100M Short
CRM•Salesforce reported Q1 revenue of $11.13 billion, up 13%, and adjusted EPS of $3.88, both surpassing estimates. The Q2 revenue forecast of $11.3 billion missed analysts’ $11.4 billion target and cash flow growth outlook was cut to 4–5%, prompting a 2% after-hours share decline.
1. Q1 Financial Results
Salesforce posted Q1 revenue of $11.13 billion, up 13% year-over-year, and adjusted EPS of $3.88, both beating analyst projections. Net income rose to $2.11 billion, enhanced by a $444 million contribution from Informatica following its November 2025 acquisition.
2. AI Products Performance
The company’s AI platforms Agentforce and Data 360 reached nearly $3.4 billion in annual recurring revenue, with Agentforce on track to deliver $1.2 billion annually, up from $800 million in February. Over half of AI bookings in the quarter came from existing customers, underscoring strong renewal demand.
3. Q2 Outlook and Guidance
Salesforce forecast Q2 revenue at $11.3 billion, narrowly missing the $11.4 billion consensus, and set full-year revenue guidance at $45.9–46.2 billion, below analysts’ range. Free cash flow growth guidance was cut to 4–5% from 9–10% due to a $25 million debt issuance for an accelerated share buyback.
4. Market Reaction
Shares fell about 2% in after-hours trading following the tempered outlook, extending a 33% year-to-date decline. Investor sentiment is split between optimism over AI-driven growth and concerns over executive departures and competition in legacy software markets.
