Marc Benioff, co-founder and CEO of Salesforce, took part in an interview in San Francisco on April 25th, 2025.
David Paul Morris | Bloomberg | Getty Images
Salesforce Even if revenue and revenues smashed past second quarter estimates, it issued disappointing guidance on Wednesday. Stocks fell 4% in extended trading.
Here’s how the company did it compared to the LSEG consensus:
Earnings per share: Adjusted $2.91 vs. $2.78 Estimated: 10.24 billion vs. $1.014 billion
Revenues rose 10% from $9.33 billion the previous year, according to the statement. Net income rose to $1.89 billion ($1.96 per share) from $1.43 billion a year ago, or $1.47 per share.
In the third quarter of the third quarter, management sought revenues of between $2.84 and $2.86 in adjusted revenue per share, with revenues of between $10.24 billion and $10.29 billion. Analysts voted by LSEG were looking for $2.85 per share with revenues of $10.29 billion.
Salesforce has maintained its full-year revenue outlook, but it believes it is currently profitable. The company aims to earn between $41.1 billion and $41.3 billion with adjusted revenue per share, between $11.33 and $11.37. The consensus estimate from LSEG was $11.31 in earnings per share and $41.2 billion in revenue. The May forecast included adjusted earnings per share from $11.27 to $11.33.
Salesforce is addressing the sales challenges of selling marketing and commerce products and increasing expiration dates, Robin Washington, the company’s president, CEO and financial officer, said in a conference call with analysts.
The company has been unfavoured on Wall Street this year due to a small extension of revenue growth that has been stuck in single digits since mid-2024. The company regularly promotes its investment in artificial intelligence and advances in software as a service, or its advances as SAAS, but like many high-tech peers, it has not been lifted by the artificial intelligence boom.
“To hear some of this nonsense on social media and elsewhere, people say the craziest things, but it’s not based on the truth about the customers,” co-founder and CEO Mark Benioff said over the phone.
Entering Wednesday’s report, Salesforce fell 23% that year, lagging behind all but one Dow stock, tracking all other big-tech companies.
According to analysts at Jefferies, Salesforce’s corporate value to free cash flow ratio reached its lowest level in 10 years due to fear of AI disruption. Salesforce is trying to counter the pressure by selling AgentForce AI software that can automate customer service questions.
Salesforce has won over 6,000 paid Agent Force transactions, according to Benioff.
In the second quarter, Salesforce said it plans to increase the costs of some products and announced its intention to acquire a data management software company Informatica $8 billion.
On Wednesday, Salesforce announced a $20 billion increase in its stock buyback program, bringing its total to $50 billion.
