Salesforce shares are falling due to lack of revenue, poor prospects

Key takeaways

Salesforce reported growth in revenue and net income in the first quarter of fiscal 2025 compared to the year-ago period, although revenue exceeded analyst estimates.
Salesforce’s second-quarter outlook was also weaker than expected.
Salesforce maintained its previously announced full-year outlook.
Salesforce shares fell more than 17% on Wednesday after the report.

Shares of Salesforce (CRM) fell more than 17% in extended trading Wednesday after the customer relationship management (CRM) company saw fiscal first-quarter revenue below analyst estimates and provided weaker-than-expected guidance.

According to estimates compiled by Visible Alpha, Salesforce reported revenue of $9.13 billion for the first fiscal quarter of 2025, up 11% from the year-ago period and below analyst expectations.

Net income was $1.53 billion, or $1.56 per share, compared to $199 million, or 20 cents per share, reported in the same period a year earlier, which beat analyst forecasts.

	1st quarter of fiscal year 25	Analyst estimates for the first quarter of FY25	1st quarter of fiscal year 24
Income	$9.13 billion	$9.15 billion	$8.25 billion
Diluted earnings per share	$1.56	$1.45	20 cents
Net income	$1.53 billion	$1.44 billion	$199 million

The company forecast second-quarter revenue of $9.2 billion to $9.25 billion, below the $9.35 billion expected by analysts. Salesforce maintained its previously announced full-year revenue guidance of $37.7 billion to $38 billion.

Salesforce CEO Marc Benioff highlighted the company’s position to benefit from the era of artificial intelligence (AI), saying this is “the beginning of a tremendous opportunity for our customers to connect with their customers in entirely new ways through AI.”

Salesforce shares fell 17.3% to $224.55 in extended trading Wednesday after publication.