Salesforce surpasses earnings expectations; however, projects single-digit revenue growth for the upcoming year.

Salesforce shares initially declined by as much as 6%, but rebounded by 1% in extended trading on Wednesday following the release of a conservative revenue forecast for the upcoming fiscal year. The company plans to introduce a dividend of 40 cents per share.

Here’s how Salesforce performed compared to estimates from LSEG (formerly known as Refinitiv):

  • Earnings per share: $2.29 (adjusted) vs. $2.26 (expected)
  • Revenue: $9.29 billion vs. $9.22 billion (expected)

In the quarter ending January 31, Salesforce witnessed a 10.8% YoY growth in revenue, reaching $1.45 billion in net income or $1.47 per share. Professional services revenue, however, experienced a 9% decline.

During a conference call with analysts, Amy Weaver, Salesforce’s finance chief, highlighted improved bookings growth over the past two quarters. In the same period, Salesforce announced the acquisition of sales commission software startup Spiff and commenced selling its products on the Amazon Web Services Marketplace.

Salesforce projected adjusted fiscal first-quarter earnings of $2.37 to $2.39 per share, with revenue ranging from $9.12 billion to $9.17 billion. Analysts had anticipated $2.20 in adjusted earnings per share on $9.15 billion in revenue.

For the 2025 fiscal year, Salesforce forecasts adjusted earnings of $9.68 to $9.76 per share and revenue between $37.7 billion and $38.0 billion, indicating an 8.6% growth at the midpoint. Analysts’ expectations were $9.57 per share and $38.62 billion in revenue.

The full-year guidance takes into account foreign-exchange pressure, ongoing weakness in professional services, and a more measured buying environment that emerged in the 2023 fiscal year. Brian Millham, Salesforce’s president and chief operating officer, stated that the guidance does not significantly consider the impact of increased demand for artificial intelligence products or the price hike announced last year.

Salesforce shares have risen approximately 14% year-to-date, outpacing the S&P 500 index’s 6% gain during the same period. The dividend, set at 40 cents per share, is payable on April 11 to shareholders at the close of business on March 14.

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