Salesforce reported first-quarter results that exceeded Wall Street expectations, with adjusted earnings per share of $3.88 compared to the $3.12 expected, and revenue of $11.13 billion versus the anticipated $11.05 billion [1]. Revenue grew 13% year over year for the quarter ending April 30, while net income rose to $2.11 billion, or $2.42 per share, up from $1.54 billion, or $1.59 per share, a year earlier [1].
Despite the strong quarterly performance, Salesforce's full-year guidance came in slightly below analyst forecasts. The company projected adjusted earnings per share of $14.06 to $14.12 on revenue of $45.9 billion to $46.2 billion, with the midpoint implying about 11% growth. Analysts had expected $13.22 per share and $46.12 billion in revenue [1]. For the current quarter, Salesforce guided for $3.25 to $3.27 in adjusted earnings per share on $11.27 billion to $11.35 billion in revenue, closely matching analyst expectations [1].
Salesforce's Agentforce AI tools, which automate sales and customer service processes, saw annualized revenue reach $1.2 billion, up 205% year over year and surpassing $1 billion for the first time [1]. Subscription and support revenue from Agentforce apps totaled $6.91 billion, up nearly 9% from a year ago, while Data 360 and other subscription and support revenue increased 25% to $3.68 billion, including $428 million from Informatica, which Salesforce acquired for $9.6 billion in November [1].
The company's remaining performance obligation, a measure of contracted revenue not yet recognized, was $67.9 billion at quarter-end, slightly below the $68.61 billion consensus among analysts [1]. Salesforce also completed acquisitions of commerce startup Cimulate and sales startup Momentum during the quarter, and announced that the U.S. Veterans Health Administration would adopt an AI agent system in Slack [1].
Despite these positive results, Salesforce shares were little changed in extended trading, and the stock has declined 33% year-to-date in 2026, compared to a 10% gain for the S&P 500, as investors remain concerned about the impact of artificial intelligence models on the company's growth prospects [1].
CONCLUSION
Salesforce delivered a strong Q1 performance, beating analyst expectations on both earnings and revenue, and highlighted rapid growth in its Agentforce AI business. However, slightly cautious full-year guidance and ongoing investor concerns about AI's impact on growth kept the stock's reaction muted. The market remains watchful as Salesforce continues to expand through acquisitions and AI-driven offerings.