Salesforce shares dropped Thursday despite the company beating first-quarter expectations, as investor concerns around macroeconomic pressures and the slow adoption of its AI products weighed on sentiment.
Salesforce (CRM) stock slid more than 5% to just over $261 on Thursday, erasing gains seen in after-hours trading Wednesday following the release of better-than-expected quarterly results.
The cloud software giant raised its revenue forecast for fiscal 2026 to between $41 billion and $41.3 billion, up from $40.5 billion to $40.9 billion, and its adjusted earnings per share estimate to $11.27 to $11.33, compared to $11.09 to $11.17 previously.12 Wall Street analysts had called for $40.79 billion in revenue and adjusted EPS of $11.15.
Salesforce shares gained close to 2% in after-hours trading. The stock was down about 17% for 2025 through Wednesday’s close.
Salesforce reported first-quarter revenue of $9.83 billion, up 8% year-over-year and above the analyst consensus from Visible Alpha. Adjusted net income of $2.5 billion, or $2.58 per share, rose from $2.41 billion, or $2.44 per share, in the year-ago quarter, beating estimates.
“I’m pleased by our momentum as we capitalize on the exciting agentic AI opportunity,” Salesforce Chief Operating and Financial Officer Robin Washington said in a release.
While the company raised its full-year revenue outlook, Oppenheimer analysts pointed out that the revision was largely driven by favorable currency exchange rates rather than underlying business momentum.
“Negatively, the growth guidance remains tepid to reflect a tough macro environment,” Oppenheimer noted, though it maintained an “outperform” rating and a $370 price target. Analyst sentiment toward Salesforce remains largely positive, with 17 “buy” ratings, five “hold,” and one “sell” among firms tracked by Visible Alpha. The average price target stands at $358.
Still, some analysts remain cautious. Morgan Stanley described a “building wall of worry” among investors, with questions about when growth will reaccelerate—particularly as Salesforce’s AI initiative, Agentforce, continues to develop.
Deutsche Bank analysts, with a “buy” rating and $400 price target, said management’s comments around customer interest in Salesforce’s AI-powered Agentforce offerings are a positive, while noting that “management enthusiasm and customer feedback continue to outpace the financial contribution.”2 Deutsche Bank. “F1Q – Solid start to the year; exercise pAItience.”
Citi echoed that sentiment, calling Agentforce a “show-me story.” While the offering is progressing, Citi analysts remain unconvinced it’s “ready for prime time,” and said the quarter’s strong results merely cleared a “low bar.”
Earlier in the week the company announced it would acquire Informatica (INFA), an AI-powered data management software provider, for $8 billion. The deal is expected to close early in Salesforce’s 2027 fiscal year, which begins in February 2026.
“With our agreement to acquire Informatica, we will bring together the industry’s leading AI CRM and AI-powered MDM and ETL platform to create the most complete, intelligent AI and data platform for the enterprise,” CEO Marc Benioff said.
Salesforce shares are now down nearly 22% year-to-date, reflecting broader investor skepticism despite the company’s efforts to integrate AI and navigate economic headwinds.
Pump Radar
Stock Alerts