Shares in Salesforce Inc. fell more than 3% in late trading today after the cloud-based software company fell short of expectations on revenue in its fiscal 2025 fourth quarter and issued disappointing first-quarter and full-year fiscal 2026 outlooks.
For the quarter that ended on Jan. 31, Salesforce reported adjusted earnings per share of $2.78, up from $2.29 per share in the same quarter of the previous fiscal year, on revenue of $9.99 billion, up 8% year-over-year. Analysts had been expecting $2.61 per share and revenue of $10.04 billion.
The majority of Salesforce’s revenue came from subscription and support, which came in at $9.45 billion in the quarter, up 8% year-over-year, while professional services and other rounded out the revenue total with $542 million, up less than 1%. Salesforce ended the quarter with current remaining performance obligations of $30.2 billion, up 9% year-over-year and total remaining performance obligations of $63.4 billion, up 11%.
Salesforce also ended the quarter with $900 million in data cloud and artificial intelligence recurring revenue, up 120% year-over-year, driven by customer growth. Some 5,000 Agentforce deals were signed since October, including over 3,000 paid.
Business highlights in the quarter included the December announcement of Agentforce 2.0, an improved version of Salesforce’s flagship AI product for enterprises with significantly improved features. Agentforce allows companies to build and customize generative AI agents, which augment the work of employees autonomously without the need for human supervision.
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