Salesforce's Q4 Misses Revenue Expectations, Beats EPS Growth

Salesforce sees mixed results in its fourth-quarter report; revenue growth of 7.6% missed expectations while EPS outperformed by 21.4%. Guidance disappointment weighs on stock.

Date: 27-02-2025

AI Rating: 6

**Salesforce Financial Overview**: Salesforce's quarterly financial report indicates a strong performance in earnings but a disappointing revenue outlook. The company reported revenue of $9.2 billion for Q4 2024, growing 7.6% from the previous year. However, this figure fell short of analyst expectations, which could negatively impact investor sentiment.

**Earnings Per Share (EPS)**: On a positive note, Salesforce delivered a standout performance in its earnings per share (EPS), registering at $2.29. This result not only reflects a year-over-year growth of 21.4% but also exceeded market expectations, bolstering confidence in the company’s profitability.

**Revenue Growth**: The company’s revenue growth of 7.6% for the last quarter was a mixed result. While growth is positive, the overall figure still missed investor expectations, which can lead to market concerns about future performance.

**Guidance Outlook**: Looking ahead, Salesforce provided guidance of $40.5 billion to $40.9 billion in revenue for the fiscal year ending January 2026. Notably, this forecast falls short of Wall Street's consensus of $41.5 billion, raising apprehensions about the company's ability to sustain revenue momentum.

**Market Reaction**: Following the earnings release and disappointing guidance, Salesforce shares dipped as much as 6% in after-market trading. This immediate market reaction underscores investor concern regarding the company's future growth trajectory.

**Summary**: While Salesforce demonstrates robust EPS growth and historic free cash flow, the mix of missed revenue expectations and below-consensus guidance may temper investor enthusiasm going forward.

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