Salesforce, Inc. (CRM.US) Q4 revenue and guidance disappointing, AI agent competition intensifying raises concerns.

On Thursday morning Beijing time, Salesforce, Inc. (CRM.US) announced its performance for the fourth quarter of the fiscal year 2025 ending on January 31, 2025. The data showed that the company's Q4 revenue increased by 7.6% year-on-year to $9.99 billion, falling short of market expectations; the earnings per share excluding certain items were $2.78, beating market expectations of $2.61. The software company achieved single-digit revenue growth for the third consecutive quarter, maintaining a faster growth rate in the long term. Looking ahead, Salesforce, Inc. expects its revenue for the fiscal year 2026 ending in January 2026 to reach between $40.5 billion and $40.9 billion, with analysts' average expectations at $41.5 billion. The company expects an adjusted operating profit margin of around 34%, compared to analysts' average expectation of 33.9%. The leading customer management software manufacturer has been promoting its artificial intelligence (AI) agent system "Agentforce," designed to complete tasks such as customer service without manual guidance. Salesforce, Inc. launched this product in October last year, facing competition from software companies like Microsoft Corporation and ServiceNow Inc., who are also pursuing a similar vision. Despite disappointing guidance, the company continues to endorse Agentforce, stating that the product has "completed 5,000 transactions." Salesforce, Inc. CEO Marc Benioff said, "Agentforce has performed exceptionally well this quarter." He cited clients such as Pfizer Inc., Singapore Airlines, and fitness chain Equinox using the product. Investors have taken note of the uncertainty brought about by the changes in Salesforce, Inc.'s executive management. Long-serving Chief Financial Officer Amy Weaver and Chief Operating Officer Brian Millham are both stepping down. Robin Washington, a seasoned technology industry professional who has been a board member of Salesforce, Inc. since 2013, will take on the newly created position of Chief Operating and Financial Officer (COFO). Earlier this month, Salesforce, Inc. laid off over 1,000 employees, reallocating funds to AI-focused projects. The company also signed a $25 billion cloud computing contract with Alphabet Inc.'s Alphabet Inc. Class C, expanding its infrastructure beyond its traditional partner Amazon.com, Inc. AWS. As of the time of writing, Salesforce, Inc. fell 4.56% after hours to $293.31.