Salesforce Q1 Earnings Exceed Expectations Despite Guidance Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 59 minutes ago
0mins
Source: seekingalpha
- Significant Earnings Growth: Salesforce reported an adjusted EPS of $3.88 for Q1, reflecting a 50% year-over-year increase and surpassing the consensus estimate of $3.13, indicating strong profitability performance.
- Strong Revenue Performance: The company achieved a 13% year-over-year revenue growth to $11.1 billion, exceeding the expected $11.06 billion, demonstrating robust market demand despite a cautious outlook for future guidance.
- Annual Outlook Adjustment: Salesforce raised its full-year revenue forecast to a range of $45.9 billion to $46.2 billion, nearly aligning with the $46.1 billion estimate, reflecting confidence in growth in the second half, particularly in Sales and Service sectors.
- Share Repurchase Plan: The company announced a $25 billion accelerated share repurchase plan, expected to be completed in Q3 FY2027, showcasing confidence in its value and aiming to enhance shareholder returns.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CRM?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CRM
Wall Street analysts forecast CRM stock price to rise
39 Analyst Rating
29 Buy
9 Hold
1 Sell
Moderate Buy
Current: 179.080
Low
223.00
Averages
326.40
High
405.00
Current: 179.080
Low
223.00
Averages
326.40
High
405.00
About CRM
Salesforce, Inc. is a customer relationship management (CRM) technology company. Its artificial intelligence (AI) powered Agentforce 360 Platform offers sales, service, marketing, commerce, collaboration, data management, integration, analytics, and information technology (IT) service solutions. It enables customers to build and deploy digital labor for employees and customers, leveraging autonomous AI agents across business functions. Its service offerings include Agentforce Sales, Agentforce Service, Agentforce 360 Platform, Slack and Others. The Agentforce Sales provides sales capabilities and tools built for organizations across prospecting, sales engagement, team collaboration, sales analytics and AI, sales programs, sales performance, partner management, and revenue and orders. The Agentforce Service provides field service solutions that enable companies to connect service agents, dispatchers and mobile employees through platform to schedule, dispatch and manage jobs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Salesforce Reports Strong Q1 Results with Record Revenue and Growth
- Strong Performance: Salesforce's Q1 GAAP EPS reached $2.42, up 52% year-over-year, while non-GAAP EPS was $3.88, up 50%, indicating a significant enhancement in profitability that reinforces its market leadership.
- Revenue Growth: Total revenue for Q1 hit $11.13 billion, a 13% increase year-over-year, with subscription and support revenue at $10.69 billion, up 14%, reflecting robust customer demand and market share expansion.
- Robust Cash Flow: The company reported operating cash flow of $6.7 billion, up 3% year-over-year, and free cash flow of $6.6 billion, up 4%, providing a solid foundation for future investments and shareholder returns.
- Shareholder Returns: Salesforce returned $27.1 billion to shareholders through stock buybacks and paid $365 million in dividends, demonstrating a strong commitment to shareholder value alongside its impressive cash flow and profitability.
See More
Multiple Companies Report Earnings Beats, Stock Movements
- Salesforce Guidance Adjustment: Salesforce guided for current-quarter revenue between $11.27 billion and $11.35 billion, slightly below analysts' expectations of $11.36 billion, although the company raised its full-year earnings guidance, indicating confidence in future growth.
- Nutanix Strong Earnings: Nutanix reported fiscal third-quarter adjusted earnings and revenue beats, with a non-GAAP operating margin of 22.3%, significantly exceeding analysts' call for 16.9%, reflecting the company's robust performance in the cloud computing sector.
- Agilent Raises Earnings Outlook: Agilent Technologies shares surged 11% after raising its full-year adjusted earnings guidance to between $6 and $6.10 per share, higher than previous estimates of $5.90 to $6.04, demonstrating strong demand in the healthcare equipment market.
- Snowflake Soars: Snowflake's stock jumped 33% in after-hours trading after announcing a $6 billion investment plan in Amazon Web Services over five years, alongside first-quarter results that surpassed estimates, showcasing its enhanced market competitiveness.
See More
Wall Street Edges Higher as Tech Stocks Rebound
- Tech Stock Rebound: Wall Street ended slightly higher on Wednesday, with the S&P 500 nearly flat and the Nasdaq Composite showing gains in the previous session, indicating a rebound in technology stocks that boosted market sentiment.
- Marvell Beats Expectations: Marvell Technology (MRVL) shares rose 3.5% in after-hours trading after reporting first-quarter adjusted earnings of $0.80 per share and a 28% year-over-year revenue increase to $2.42 billion, surpassing Wall Street forecasts and reflecting strong market demand.
- Salesforce Guidance Miss: Salesforce (CRM) reported a 50% year-over-year surge in first-quarter earnings per share for fiscal 2027; however, shares fell about 3% as its second-quarter revenue guidance fell short of expectations, indicating market concerns about future growth.
- Synopsys Shares Decline: Despite Synopsys (SNPS) posting first-quarter results and guidance that exceeded Wall Street expectations, with adjusted earnings of $3.35 per share and a 42.5% year-over-year revenue increase to $2.28 billion, its shares fell 2.2%, reflecting investor caution regarding its future performance.
See More
Salesforce Q1 Earnings Exceed Expectations Despite Guidance Miss
- Significant Earnings Growth: Salesforce reported an adjusted EPS of $3.88 for Q1, reflecting a 50% year-over-year increase and surpassing the consensus estimate of $3.13, indicating strong profitability performance.
- Strong Revenue Performance: The company achieved a 13% year-over-year revenue growth to $11.1 billion, exceeding the expected $11.06 billion, demonstrating robust market demand despite a cautious outlook for future guidance.
- Annual Outlook Adjustment: Salesforce raised its full-year revenue forecast to a range of $45.9 billion to $46.2 billion, nearly aligning with the $46.1 billion estimate, reflecting confidence in growth in the second half, particularly in Sales and Service sectors.
- Share Repurchase Plan: The company announced a $25 billion accelerated share repurchase plan, expected to be completed in Q3 FY2027, showcasing confidence in its value and aiming to enhance shareholder returns.
See More
Salesforce Q1 Results Exceed Expectations
- Earnings Beat: Salesforce's Q1 non-GAAP EPS of $3.88 exceeded expectations by $0.75, demonstrating strong profitability despite cautious market sentiment regarding future guidance.
- Revenue Growth: The company reported Q1 revenue of $11.13 billion, surpassing market expectations by $70 million, indicating its robust competitiveness in the software market and ability to attract more customers and increase market share.
- Market Sentiment Impact: Despite strong performance, Salesforce's stock dipped due to negative sentiment surrounding future guidance, reflecting investor concerns about the company's growth prospects, which may affect short-term stock performance.
- Bond Yield Comparison: Salesforce's A+ rated bonds yield 6.6%, while lower than Oracle's 7.4%, still indicate the company's attractiveness in the debt market, potentially appealing to investors seeking stable returns.
See More
Salesforce Earnings Beat Expectations Amid Negative Sentiment
- Strong Earnings Performance: Salesforce reported a non-GAAP EPS of $3.88, beating expectations by $0.75, indicating robust profitability despite prevailing negative market sentiment.
- Revenue Growth: The company achieved $11.13 billion in revenue for Q1, exceeding market expectations by $70 million, showcasing its competitive position and sustained demand in the software market.
- Attractive Bond Yields: Salesforce's A+ rated bonds offer a 6.6% yield, while lower than Oracle's 7.4%, still attract investors, reflecting confidence in the company's financial stability.
- Market Sentiment Impact: Despite strong earnings data, the focus on agent force and acquisition talks may lead to short-term stock price volatility, prompting investors to monitor developments closely to assess long-term investment value.
See More
Salesforce Reports Strong Q1 Results with Record Revenue and Growth
- Strong Performance: Salesforce's Q1 GAAP EPS reached $2.42, up 52% year-over-year, while non-GAAP EPS was $3.88, up 50%, indicating a significant enhancement in profitability that reinforces its market leadership.
- Revenue Growth: Total revenue for Q1 hit $11.13 billion, a 13% increase year-over-year, with subscription and support revenue at $10.69 billion, up 14%, reflecting robust customer demand and market share expansion.
- Robust Cash Flow: The company reported operating cash flow of $6.7 billion, up 3% year-over-year, and free cash flow of $6.6 billion, up 4%, providing a solid foundation for future investments and shareholder returns.
- Shareholder Returns: Salesforce returned $27.1 billion to shareholders through stock buybacks and paid $365 million in dividends, demonstrating a strong commitment to shareholder value alongside its impressive cash flow and profitability.
See More
Multiple Companies Report Earnings Beats, Stock Movements
- Salesforce Guidance Adjustment: Salesforce guided for current-quarter revenue between $11.27 billion and $11.35 billion, slightly below analysts' expectations of $11.36 billion, although the company raised its full-year earnings guidance, indicating confidence in future growth.
- Nutanix Strong Earnings: Nutanix reported fiscal third-quarter adjusted earnings and revenue beats, with a non-GAAP operating margin of 22.3%, significantly exceeding analysts' call for 16.9%, reflecting the company's robust performance in the cloud computing sector.
- Agilent Raises Earnings Outlook: Agilent Technologies shares surged 11% after raising its full-year adjusted earnings guidance to between $6 and $6.10 per share, higher than previous estimates of $5.90 to $6.04, demonstrating strong demand in the healthcare equipment market.
- Snowflake Soars: Snowflake's stock jumped 33% in after-hours trading after announcing a $6 billion investment plan in Amazon Web Services over five years, alongside first-quarter results that surpassed estimates, showcasing its enhanced market competitiveness.
See More
Wall Street Edges Higher as Tech Stocks Rebound
- Tech Stock Rebound: Wall Street ended slightly higher on Wednesday, with the S&P 500 nearly flat and the Nasdaq Composite showing gains in the previous session, indicating a rebound in technology stocks that boosted market sentiment.
- Marvell Beats Expectations: Marvell Technology (MRVL) shares rose 3.5% in after-hours trading after reporting first-quarter adjusted earnings of $0.80 per share and a 28% year-over-year revenue increase to $2.42 billion, surpassing Wall Street forecasts and reflecting strong market demand.
- Salesforce Guidance Miss: Salesforce (CRM) reported a 50% year-over-year surge in first-quarter earnings per share for fiscal 2027; however, shares fell about 3% as its second-quarter revenue guidance fell short of expectations, indicating market concerns about future growth.
- Synopsys Shares Decline: Despite Synopsys (SNPS) posting first-quarter results and guidance that exceeded Wall Street expectations, with adjusted earnings of $3.35 per share and a 42.5% year-over-year revenue increase to $2.28 billion, its shares fell 2.2%, reflecting investor caution regarding its future performance.
See More
Salesforce Q1 Earnings Exceed Expectations Despite Guidance Miss
- Significant Earnings Growth: Salesforce reported an adjusted EPS of $3.88 for Q1, reflecting a 50% year-over-year increase and surpassing the consensus estimate of $3.13, indicating strong profitability performance.
- Strong Revenue Performance: The company achieved a 13% year-over-year revenue growth to $11.1 billion, exceeding the expected $11.06 billion, demonstrating robust market demand despite a cautious outlook for future guidance.
- Annual Outlook Adjustment: Salesforce raised its full-year revenue forecast to a range of $45.9 billion to $46.2 billion, nearly aligning with the $46.1 billion estimate, reflecting confidence in growth in the second half, particularly in Sales and Service sectors.
- Share Repurchase Plan: The company announced a $25 billion accelerated share repurchase plan, expected to be completed in Q3 FY2027, showcasing confidence in its value and aiming to enhance shareholder returns.
See More
Salesforce Q1 Results Exceed Expectations
- Earnings Beat: Salesforce's Q1 non-GAAP EPS of $3.88 exceeded expectations by $0.75, demonstrating strong profitability despite cautious market sentiment regarding future guidance.
- Revenue Growth: The company reported Q1 revenue of $11.13 billion, surpassing market expectations by $70 million, indicating its robust competitiveness in the software market and ability to attract more customers and increase market share.
- Market Sentiment Impact: Despite strong performance, Salesforce's stock dipped due to negative sentiment surrounding future guidance, reflecting investor concerns about the company's growth prospects, which may affect short-term stock performance.
- Bond Yield Comparison: Salesforce's A+ rated bonds yield 6.6%, while lower than Oracle's 7.4%, still indicate the company's attractiveness in the debt market, potentially appealing to investors seeking stable returns.
See More
Salesforce Earnings Beat Expectations Amid Negative Sentiment
- Strong Earnings Performance: Salesforce reported a non-GAAP EPS of $3.88, beating expectations by $0.75, indicating robust profitability despite prevailing negative market sentiment.
- Revenue Growth: The company achieved $11.13 billion in revenue for Q1, exceeding market expectations by $70 million, showcasing its competitive position and sustained demand in the software market.
- Attractive Bond Yields: Salesforce's A+ rated bonds offer a 6.6% yield, while lower than Oracle's 7.4%, still attract investors, reflecting confidence in the company's financial stability.
- Market Sentiment Impact: Despite strong earnings data, the focus on agent force and acquisition talks may lead to short-term stock price volatility, prompting investors to monitor developments closely to assess long-term investment value.
See More
