Salesforce Inc. (CRM) reported its fiscal first-quarter results after the bell Wednesday, and they were a bit of a mixed bag. The company beat expectations on both the top and bottom lines, but a slightly disappointing revenue outlook for the current quarter sent shares sliding in after-hours trading.
For the quarter ended April 30, Salesforce posted revenue of $11.13 billion, topping the consensus estimate of $11.05 billion. Adjusted earnings came in at $3.88 per share, well above the $3.12 analysts were looking for. Revenue grew 13% year-over-year, and the company ended the quarter with total remaining performance obligations of $67.9 billion, up 11% from a year ago.
Cash flow was also a bright spot: operating cash flow hit $6.7 billion, and free cash flow was $6.6 billion. The company had about $8.94 billion in cash and equivalents on hand.
“This was an outstanding quarter for Salesforce — record revenue, record deals and cash flow. Agentic AI is the biggest growth opportunity for our customers, and for Salesforce,” said Marc Benioff, chair and CEO of Salesforce.
But the market is forward-looking, and Salesforce’s guidance for the second quarter gave investors pause. The company expects Q2 revenue in the range of $11.27 billion to $11.35 billion, versus the $11.36 billion consensus. Adjusted earnings guidance of $3.25 to $3.27 per share was slightly above the $3.24 estimate.
For the full fiscal year 2027, Salesforce sees revenue of $45.9 billion to $46.2 billion, compared to the $46.12 billion analysts expected. However, the company raised its adjusted earnings guidance to $14.06-$14.12 per share, up from the prior range of $13.11-$13.19 and well above the $13.22 consensus.
Salesforce also announced a $25 billion accelerated share repurchase program, with final settlement expected in the third quarter.
Shares of Salesforce were down 3.22% in after-hours trading, changing hands at $171.80 at the time of publication. The company’s management team will discuss the results further on an earnings call at 5 p.m. ET.
