Salesforce Inc (NYSE:CRM) reported fiscal Q1 results that exceeded revenue and EPS expectations but slightly missed margin estimates. Adjusted EPS came in at $2.58 versus a $2.54 consensus, and revenue rose 8% YoY to $9.8 billion, beating the $9.75 billion forecast. However, operating margins were 32.3%, just below the expected 32.5%.
CEO Marc Benioff highlighted strong demand for AI and Data Cloud products as key growth drivers. The company raised full-year revenue guidance by $400 million to a range of $41.0–41.3 billion and increased adjusted EPS guidance to $11.27–11.33. Salesforce’s annual recurring revenue from Data Cloud and AI exceeded $1 billion, growing over 120% YoY.
Salesforce also announced plans to acquire Informatica for $8 billion, with the deal expected to close in early fiscal 2027 and no impact on 2026 guidance.
RBC Capital Markets downgraded Salesforce shares, citing concerns over the Informatica acquisition and reduced the price target to $275 from $420.
For Q2, Salesforce projects revenue between $10.11 billion and $10.16 billion, reflecting 8–9% growth.