CRM Stock Dips After-Hours As Q2 Revenue Outlook Marginally Misses Expectations

• Salesforce reported Q1 revenue of $11.13 billion, exceeding analyst expectations.
• The company’s AI products, Agentforce and Data 360, reached nearly $3.4 billion in annual recurring revenue. 
• Q1 profits came in at $3.88 per share, beating expectations of $3.13 per share.

Salesforce (CRM) share price dropped about 2% after-hours after the software developer’s revenue forecast for the second quarter fell short of expectations, at a time when investors are turning increasingly skittish about growth prospects for software services as AI takes center stage.

Net income rose to $2.11 billion, or $2.42 per share, from $1.54 billion, or $1.59 per share, a year earlier, while adjusted per-share earnings were $3.88, ahead of the $3.13 anticipated by analysts.

Revenue grew by 13% to reach $11.13 billion, surpassing the $11.05 billion expected according to data from Fiscal.ai. These results were bolstered by a $444 million contribution from Informatica, a company Salesforce finalized its acquisition of in November 2025.

The Slack owner and many other software-as-a-service (SaaS) companies are facing increasing competition from the rapid developments of AI tools which to a certain extent are picking into legacy software revenues. 

Salesforce said its AI platform Agentforce is now on track to contribute $1.2 billion of annual revenue, up from $800 million in February. More than half of Agentforce and Data 360 bookings came from existing customers in the first quarter. 

“The healthy results from Agentforce still aren’t boosting overall numbers,” Raimo Lenschow, an analyst at Barclays, wrote in a note, accessed by Bloomberg. “We are not sure this will be enough to drive a meaningful reaction.” 

CRM Q2 Outlook 

Salesforce expects average Q2 revenue at $11.3 billion, marginally missing expectations of $11.4 billion, while its full-year FY27 revenue expectations were in the range of $45.9 billion to $46.2 billion, also lower than analyst expectations of $45.76 to $47.42 billion. 

CRM also reduced its outlook for cash flow growth to a range of 4% to 5%—down from 9% to 10%—due to a $25 million debt issuance for an accelerated share buyback program it announced in March. 

CRM Retail View 

Retail sentiment was “extremely bullish” with “extremely high” message volumes. 

However, one user was bearish, highlighting top executive exits from the firm and revenue misses as reasons to sell the stock. 

CRM stock has dropped nearly 33% year-to-date.

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