Salesforce (NYSE: CRM) shares tumbled more than 5% in after-hours trading on Wednesday after the cloud software company issued weaker-than-expected guidance and reported fourth-quarter revenue that missed analyst estimates.
The San Francisco-based firm posted adjusted earnings of $2.78 per diluted share for the fourth quarter, beating Wall Street estimate of $2.61 per share. However, revenue came in at $9.99 billion, missing the $10.04 billion analysts had forecasted.
For the upcoming first quarter, Salesforce expects adjusted earnings per share to range between $2.53 and $2.55, with revenue projected to land between $9.71 billion and $9.76 billion. Those figures disappointed investors, as analysts had anticipated earnings of $2.62 per share on revenue of $9.91 billion.
Looking further ahead to fiscal year 2026, Salesforce (NYSE: CRM) provided full-year guidance that also trailed expectations. The company forecasts revenue between $40.5 billion and $40.9 billion, paired with adjusted earnings per share of $11.09 to $11.17. In contrast, Wall Street had predicted revenue of $41.32 billion and earnings of $11.19 per share. The lower projections suggest Salesforce is bracing for potential headwinds in the year ahead.
The earnings report arrives amid a notable transition at the company. Salesforce recently revealed that Robin Washington, previously the chief financial officer at Gilead Sciences (NASDAQ: GILD), will join as chief operating and financial officer on March 21. Investors will be watching closely how Washington steers the company through its next chapter.
