From CNBC: 2025-05-29 10:56:00

Salesforce shares dropped 6% despite exceeding Wall Street’s Q1 estimates and raising full-year guidance due to AI benefits. The company now projects $11.27 to $11.33 EPS and $41.0 billion to $41.3 billion in revenue for the fiscal year, up from previous forecasts. Analysts remain optimistic about Salesforce’s performance and acquisitions.

Salesforce recently announced plans to acquire Informatica for $8 billion to enhance its AI offerings. The company’s results slightly missed expectations for Q2 growth and operating margin. RBC Capital Markets downgraded shares to sector perform, citing execution risks with ongoing acquisitions. Analysts expressed concerns about Informatica’s impact on Salesforce’s core business.

Despite tariff uncertainties, Salesforce’s results were considered positive against a backdrop of market volatility. Net income remained steady at $1.54 billion, with adjusted earnings per share at $2.58 for Q1, beating estimates. Revenues grew by nearly 7.6% to $9.83 billion, surpassing expectations. Analysts praised Salesforce’s performance amid macroeconomic concerns.



Read more at CNBC:: Salesforce shares fall as software maker shows pockets of weakness