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.
Zabih Ullah is a seasoned finance writer with more than ten years of experience. He is highly skilled at analyzing market trends, decoding economic data, and providing insightful commentary on various financial topics. Driven by his curiosity, Zabih stays updated with the latest developments in the finance industry, ensuring that his readers receive timely and relevant news and analysis. Read Full Bio
