Salesforce CRM Q1 Earnings Report Brings Surprise and Strong Forecast
Salesforce CRM surprises investors with a stronger-than-expected Q1 earnings report, boosts full-year forecasts, and leans into AI innovation with Agentforce and a bold Informatica buy.
Summary
- Salesforce CRM beat Q1 estimates with $9.83 billion revenue and $2.58 adjusted EPS.
- Full-year guidance raised to $41–$41.3 billion in revenue and $11.27–$11.33 adjusted EPS.
- Agentforce closes 8,000+ deals, setting up AI as a major revenue driver.
- $8 billion Informatica acquisition sparks optimism and questions about M&A strategy.
Salesforce CRM Strong Q1 Surprise
Salesforce kicked off fiscal 2026 with a bang, delivering $9.83 billion in Q1 revenue, slightly above analyst estimates. Adjusted earnings per share landed at $2.58, again beating Wall Street’s $2.54 forecast.
While net income remained mostly flat compared to last year, Salesforce’s aggressive push into AI and cloud services fueled investor optimism, pushing shares up 1.5% in after-hours trading.
AI and Agentforce Are at the Center
Agentforce, Salesforce’s AI agent platform, is showing early promise. The company has closed over 8,000 deals since launch, with more than half already paid, pushing its Data Cloud and AI annual recurring revenue past $1 billion. Analysts suggest Agentforce could become Salesforce’s top revenue contributor by 2026. Internally, the company has already saved $50 million by reassigning 500 customer support workers thanks to AI automation.
The Informatica Acquisition Gamble
On top of its organic AI efforts, Salesforce announced an $8 billion acquisition of data management firm Informatica, its biggest deal since buying Slack in 2021. While some investors are wary of returning to big-ticket M&A, analysts see the Informatica buy as reasonably priced and strategically sound. CEO Marc Benioff emphasized that Informatica’s tools will help companies clean and manage data to fully tap into AI’s potential, especially when sold through Salesforce’s massive distribution network.
Pros
- Strong Q1 performance beats analyst estimates.
- Agentforce shows huge AI-driven revenue potential.
- Informatica deal strengthens Salesforce’s data capabilities.
Cons
- Concerns over Salesforce’s return to big M&A spending.
- Flat net income despite revenue growth.
- Potential slowdown in marketing and commerce software sectors.
Conclusion
Salesforce’s Q1 report highlights a company leaning confidently into AI and cloud technologies, with Agentforce poised to become a key growth engine. The Informatica acquisition shows Salesforce’s determination to lead in data-driven AI, though it also raises questions about its long-term M&A approach. Investors will be watching closely as Salesforce pushes toward its ambitious 2026 targets.
FAQs
Q: How much revenue did Salesforce report in Q1?
A: Salesforce reported $9.83 billion in Q1 revenue, beating analyst expectations.
Q: What is Agentforce?
A: Agentforce is Salesforce’s AI agent platform, designed to automate tasks and drive new revenue streams for the company.
Q: Why did Salesforce buy Informatica?
A: Salesforce acquired Informatica to strengthen its data management tools, helping customers prepare their data for AI-driven applications.
