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Marc Benioff, CEO of Salesforce, appears on a panel at the World Economic Forum in Davos, Switzerland, on Jan. 18, 2024.

Stefan Wermuth | Bloomberg | Getty Images

Salesforce shares plummeted 17% in extended trading on Wednesday after the cloud software vendor reported weaker-than-expected revenue and issued guidance that trailed Wall Street’s expectations.

Here’s how the company did, compared with the LSEG consensus:

  • Earnings: $2.44 per share, adjusted, vs. $2.38 per share expected
  • Revenue: $9.13 billion, vs. $9.17 billion expected

Salesforce called for adjusted earnings per share in the current quarter of $2.34 to $2.36 on $9.2 billion to $9.25 billion in revenue. Analysts surveyed by LSEG had expected $2.40 in adjusted earnings per share on $9.37 billion in revenue.

Revenue in the fiscal first quarter, which ended April 30, increased 11% from $8.25 billion a year earlier, Salesforce said in a statement. It’s the first time in more than five years that Salesforce fell short on revenue.

All five of Salesforce’s product categories contributed to the growth. But revenue from the Professional Services and Other category, at $548 million, was down 9% and under the StreetAccount consensus of $572.9 million.

Net income jumped to $1.53 billion, or $1.56 per share, from $199 million, or 20 cents per share a year ago.

Salesforce lifted its earnings forecast for the 2025 fiscal year. The company now expects adjusted earnings of $9.86 to $9.94 per share, compared with $9.68 to $9.76 three months ago. Its revenue guidance remains at $37.7 billion to $38 billion. Analysts polled by LSEG were looking for $9.76 in adjusted earnings per share and $38.08 billion in revenue.

During the quarter, Salesforce started selling its Einstein Copilot assistant sales and customer service reps. The company also said all paid Slack customers were gaining access to artificial intelligence features such as conversation summaries and daily recaps.

A drop of this magnitude on Thursday would mark Salesforce’s worst day on the market since the 2008 financial crisis.

Before the after-hours move, Salesforce shares were up 3.5% so far this year, trailing the S&P 500 index, which is up around 11% over the same period.

Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.

This is breaking news. Please check back for updates.

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