Salesforce (CRM) Beats Expectations for Q1

Salesforce.com Inc. (NYSE:CRM) has been around for more than two decades. It was founded by Marc Benioff in a small apartment in San Francisco. Benioff wanted to make software available for the masses through cloud computing, reducing the need to buy and maintain expensive computer hardware and software systems. Today, Salesforce is one of the world’s biggest software companies, enabling enterprises to connect to their customers using its suite of software and cloud technologies.

The California-based software company recently announced strong financial results for the first quarter. Salesforce reported adjusted earnings of $1.21 per share, crushing analysts’ average estimate of 88 cents per share. Revenue for the quarter jumped 23 percent on a year-over-year basis to $5.96 billion, beating the consensus forecast of $5.89 billion.

Subscription and support revenues increased 21 percent on a year-over-year basis to $5.54 billion in the quarter, while professional services and other revenues climbed 47 percent to $0.43 billion.

Speaking on the results, CFO Amy Weaver said, “Our performance in the first quarter was strong across all financial metrics. We saw record levels of new business and strength across all products, regions, and customer sizes. Our impressive start to this year helps fuel our momentum for the rest of the year as we keep pace toward our goal of $50 billion in revenue in FY26.”

Salesforce also updated its financial outlook for the full year. The company is anticipating adjusted earnings in the range of $3.79 per share to $3.81 per share and revenue between $25.9 billion and $26 billion. The guidance is above the consensus forecast of $3.43 per share for earnings and $25.8 billion for revenue.