Salesforce lifts outlook as AI revenue grows

Salesforce (CRM) reported first-quarter revenue of $11.13 billion, exceeding market expectations. The company also delivered an adjusted earnings-per-share beat, though specific EPS figures for the quarter were not detailed in the available reports. Management used the strong start to the year to increase both earnings and revenue guidance for the full fiscal year.

Salesforce (CRM) raised its full-year adjusted EPS guidance to a range of $14.06 to $14.12. Full-year revenue is now projected between $45.9 billion and $46.2 billion. For the current quarter, the company guided to adjusted EPS of $3.25 to $3.27 on revenue of $11.27 billion to $11.35 billion.

Despite the beat and higher guidance ranges, Salesforce shares slipped about 1.5% in extended trading following the announcement. The muted-to-negative reaction came even as the company highlighted strong performance in fast-growing areas such as AI-driven products.

Salesforce emphasized the growing contribution of artificial intelligence to its business. The company said annualized revenue from its Agentforce AI platform reached $1.2 billion, representing a 205% year-over-year increase. Management presented this as evidence of rapid adoption of its AI offerings across the customer base.

CEO Marc Benioff described AI as a strengthening force for Salesforce during post-earnings commentary. He said Agentforce is being integrated across the company’s products, including core applications, and highlighted a Slack integration driven by Anthropic as a concrete example of how AI is being embedded into collaboration tools.

The focus on Agentforce and AI integrations aligns with concerns in the broader market about how AI disruption could reshape software demand. Management’s comments were aimed at showing that Salesforce is positioning its platform to benefit from, rather than be displaced by, AI trends.

Beyond revenue and guidance, Salesforce pointed to remaining performance obligations as a key indicator of future demand. Remaining performance obligations stood at $67.9 billion at the end of the quarter, reflecting contracted revenue that is expected to be recognized over time.

This bookings metric, alongside the company’s updated full-year revenue outlook, was presented as evidence of sustained customer commitments even as AI-related changes influence how clients plan and consume cloud software.

CFO Robin Washington highlighted the impact of share repurchases on Salesforce’s per-share results. She said accelerated buybacks reduced the company’s diluted share count by 10% year over year. This lower share count contributed roughly $0.23 to first-quarter adjusted EPS.

The buyback strategy forms part of Salesforce’s broader effort to support shareholder returns while investing in AI and platform capabilities. Management framed the combination of AI growth, solid bookings and capital returns as central to its plan to improve performance and address concerns around the stock’s recent struggles.