Salesforce delivers strong Q1, ups outlook

Salesforce reported better-than-expected first quarter results and raised its outlook. The company said its AI and data annual recurring revenue in the quarter was $3.4 billion.

The company reported first quarter earnings of $2.42 a share on revenue of $11.1 billion, up 13% from a year ago. Non-GAAP earnings for the quarter were $3.88 a share.

Wall Street was expecting Salesforce to report first quarter non-GAAP earnings of $3.13 a share on revenue of $11.06 billion.

CEO Marc Benioff said, “agentic AI is the biggest growth opportunity for our customers and for Salesforce.” He added that Salesforce delivered 3.8 billion Agentic Work Units, a metric the company introduced last quarter. See: Salesforce's Agentic Work Unit: What you need to know

As for the outlook, Robin Washington, President and Chief Financial and Operating Officer at Salesforce, said the company expects organic revenue acceleration in the second half of fiscal 2027. Salesforce is projecting second quarter revenue of $11.27 billion to $11.35 billion, up 10% to 11%, with non-GAAP earnings of $3.25 a share to $3.27 a share. For fiscal 2027, Salesforce projected revenue of $45.9 billion to $46.2 billion with non-GAAP earnings of $14.06 a share to $14.12 a share..

That guidance was ahead of Wall Street estimates.

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By the numbers:

• Informatica cloud ARR was $1.1 billion.
• Agentforce ARR was up 205% from a year ago.
• The company processed more than 28.6 trillion tokens to date and 1 trillion API calls across core products in the first quarter.
• Agentforce apps subscription and support revenue in the quarter was $6.91 billion with Data 360, Headless Platform and other at $3.68 billion. Salesforce revamped how it segmented its revenue.