Salesforce Shares Plunge Amid First Revenue Miss and Soft Cloud Demand

Salesforce reported its Q1 2025 earnings, highlighting a revenue of $9.13 billion, up 11% year-over-year, driven by strong growth in subscription and support revenue. The company emphasized its ongoing transformation with artificial intelligence and data cloud, which are becoming critical for future growth. Despite a challenging buying environment and some internal go-to-market changes, Salesforce maintained its full-year revenue guidance and showcased significant improvements in operating margins and cash flow. The company also reiterated its commitment to disciplined M&A within a strategic framework.