Salesforce Delivers Mixed Financial Results And Weak Guidance

Salesforce’s (CRM) stock is down 3% after the cloud-based software company reported mixed fourth-quarter 2024 financial results and offered guidance that missed Wall Street targets.The San Francisco-based company announced earnings per share (EPS) of $2.78 U.S., which topped the consensus estimate among analysts of $2.61 U.S. However, revenue for the quarter of $10 billion U.S. slightly missed Wall Street’s forecast of $10.04 billion U.S.Salesforce has been spending heavily on artificial intelligence (A.I.), adding the technology to its suite of cloud-computing software products to automate tasks and work performed by humans. In terms of forward guidance, Salesforce said that it expects revenue in the current quarter of $9.71 billion U.S. to $9.76 billion U.S. That outlook was below the consensus view of $9.91 billion U.S. For all of this year, Salesforce sees revenue at $40.50 billion U.S. to $40.90 billion U.S., which is also short of the analyst consensus that called for $41.46 billion U.S.As for profits, Salesforce said that it expects full-year earnings per share of $11.09 U.S. to $11.17 U.S. That guidance too was below the $11.20 U.S. that Wall Street expected. The mixed results and guidance miss has Salesforce’s stock trending lower. So far in 2025, Salesforce stock has declined 7% to trade at $307.33 U.S.