Salesforce Earnings: Slowing Growth Leaves Us Wondering If Guidance Is Too Aggressive

We are lowering our fair value estimate for wide-moat Salesforce to $285 per share from $300 after the company reported lower-than-expected fiscal 2025 first-quarter revenue and guided for second-quarter revenue lower than we anticipated. After robust fourth-quarter results, management pointed to macro trends reverting to where they have been for the last couple of years, with elongated sales cycles and more approvals factoring into guidance. While the second-quarter outlook was light, management maintained its full-year outlook, raising the possibility of further disappointment throughout the rest of the year. The firm had success during the quarter with multicloud deals, while management remains excited about the artificial intelligence opportunity, which we believe Salesforce is well positioned to capitalize on. We see the shares as attractive.