Salesforce, Inc. posted its financial results for the fourth quarter of fiscal 2025 on Wednesday, demonstrating some promising gains alongside mixed forecasts. The customer relationship management platform revealed adjusted earnings per share (EPS) of $2.78, surpassing analysts' estimates of $2.61 by $0.17.
Despite the positive EPS, the reported revenue for the quarter fell short of analyst estimates, coming in at $10 billion against the consensus of $10.04 billion. This 7.6% annual revenue growth was noted, showing resilience even as portions of the earnings guidance disappointed investors.
According to the company, net income rose to $1.71 billion or $1.75 per share, compared to $1.45 billion, or $1.47 per share, reported during the same period last year. The subscription and support revenue category hit $2.33 billion, indicated as the strongest sector, though slightly below the $2.37 billion consensus.
Salesforce saw $2.13 billion generated from its sales category, marking another 8% increase but also falling behind analyst expectations of $2.17 billion. The company attributed some of its performance to the introduction of Agentforce, its second-generation artificial intelligence technology, aimed at enhancing communications through the Slack messaging platform.
Marc Benioff, Salesforce’s co-founder and CEO, emphasized the scale at which Agentforce is operating, stating, "A lot of other vendors are talking about their agent capabilities, but few are able to show they’ve got this really running at scale." Indeed, Salesforce reported completing more than 3,000 paid deals involving Agentforce since the technology’s introduction last October.
Contrary to the otherwise encouraging figures, the company’s guidance for the initial quarter of fiscal 2026 raised some eyebrows. It projected adjusted earnings per share of $2.53 to $2.55, below the market consensus of $2.62. Estimated revenues for the upcoming quarter are anticipated to land between $9.71 billion and $9.76 billion, against expectations of $9.91 billion. For the full fiscal year 2026, Salesforce's forecast suggests adjusted EPS ranging from $11.09 to $11.17—below the anticipated $11.19—and revenues from $40.5 billion to $40.9 billion, contrasted with the consensus estimate of $41.46 billion.
Salesforce's mixed results reflected through the trading day, as its stock fell around 4% during extended trading, raising concerns among investors about future growth amid intensifying competition. So far this year, Salesforce's shares have dropped approximately 8%, contrasting with the overall S&P 500 index which has seen marginal growth of about 1%.
Looking forward, Benioff reiterated Salesforce’s commitment to innovation, particularly mentioning collaboration with government sectors utilizing Slack, stating, "We’ll work closely with the government. We’ll do anything we can to help them succeed." This confidence suggests Salesforce will maintain its focus on developing scalable solutions amid competitive pressures, especially as technology companies race to integrate AI capabilities.
Analysts are closely monitoring how effective Agentforce will become in generating revenue within the company’s broader portfolio—since its substantial potential impact on the company's bottom line is expected to materialize more significantly over the next fiscal year.
Salesforce’s latest earnings release and future guidance signify not only the company’s current positioning but also its strategic aspirations to sustain growth and push technological boundaries.