Salesforce turns in strong results and optimistic forecast

Salesforce CEO Marc Benioff was interviewed at the World Economic Forum in Davos, Switzerland on January 22, 2025. Salesforce shares experienced volatility in after-hours trading following the company’s positive fiscal first-quarter results and guidance announcement. The results exceeded expectations, with adjusted earnings per share at $2.58 compared to an expected $2.54, and revenue reaching $9.83 billion against a forecast of $9.75 billion.

The company’s revenue increased by 7.6% year-over-year for the quarter ending on April 30. Despite challenges such as new tariffs imposed by President Donald Trump, Benioff expressed optimism about the company’s performance and announced plans to acquire Informatica for $8 billion.

This acquisition marks Salesforce’s most expensive deal since purchasing Slack for $27.1 billion in 2021. Activist investors have raised concerns about the company’s spending habits, prompting Salesforce to cut 10% of its workforce and implement other cost-saving measures.

Initial reactions to the Informatica acquisition were positive, with analysts noting that Salesforce paid a reasonable price for the asset. Benioff emphasized the strategic fit between Informatica and Salesforce, highlighting their combined capabilities in data management and AI.

Looking ahead, Salesforce raised its full-year forecast, expecting adjusted earnings per share between $11.27 and $11.33 and revenue totaling $41.0 billion to $41.3 billion. The company anticipates continued growth in subscription and support revenue, driven in part by the deployment of AI agents through initiatives like the AgentExchange marketplace.

Despite a decline in stock value in 2025, Salesforce remains focused on innovation and growth opportunities in the evolving technology landscape.