Salesforce Q1 Revenue $11.13B, EPS $3.88 Beats; Guides Soft Q2 Outlook
CRM•Salesforce reported Q1 revenue of $11.13 billion and adjusted EPS of $3.88, topping consensus by $80 million and $0.76 respectively, but guided Q2 revenue of $11.27–11.35 billion below the $11.36 billion analyst estimate, triggering a share decline. Analysts highlighted stronger-than-expected CRPO bookings, sequential Agent Force growth and multiple AI monetization vectors from Headless, Slack and Data 360 as bull catalysts, while cautioning on larger-than-anticipated Informatica contribution and executive departures.
1. Q1 Earnings & Guidance
Salesforce posted first-quarter revenue of $11.13 billion and adjusted EPS of $3.88, surpassing consensus by $80 million and $0.76 per share. The company forecast second-quarter revenue of $11.27–11.35 billion versus the $11.36 billion analyst expectation.
2. Analyst Bull Case
Analysts highlighted solid CRPO bookings growth and a meaningful sequential increase in Agent Force unit metrics. They cited multiple AI monetization vectors — including Headless, Slack and Data 360 — as key catalysts for accelerating growth in the second half.
3. Identified Risks
Concerns were raised over a larger-than-anticipated contribution from the Informatica acquisition and notable executive departures to AI labs. Some analysts also flagged potential limitations in seat-based pricing models due to tech sector layoffs.
4. Stock Market Reaction
Shares dipped following the guidance miss, despite the earnings beat, after trading down over 30% year to date. Approximately 75% of analysts maintain a buy rating at current levels, reflecting belief that much negativity is already priced in.
