Salesforce shares advance on strong results and optimistic forecast

Core Insights - Salesforce reported an 8% year-over-year revenue growth for the fiscal first quarter, with net income of $1.54 billion, or $1.59 per share, remaining relatively flat compared to the previous year [1][2][6] Financial Performance - Revenue for the quarter ending April 30 was $9.83 billion, exceeding expectations of $9.75 billion [9] - Adjusted earnings per share for the fiscal second quarter are projected to be between $2.76 and $2.78, with revenue expected to be between $10.11 billion and $10.16 billion, surpassing analyst expectations [6] - Full-year guidance was raised to $11.27 to $11.33 in adjusted earnings per share and $41.0 billion to $41.3 billion in revenue, compared to previous guidance of $11.09 to $11.17 in adjusted earnings per share and $40.5 billion to $40.9 billion in revenue [7] Strategic Moves - Salesforce announced plans to acquire data management company Informatica for $8 billion, marking its largest acquisition since the $27.1 billion Slack deal in 2021 [2][3] - The company has taken steps to reduce costs by cutting 10% of its workforce and disbanding its mergers and acquisitions committee [4] Market Reception - Initial reactions to the Informatica acquisition were positive, with analysts noting that the deal is reasonably priced and should be more digestible for investors compared to previous large acquisitions [5] - Despite the positive financial results and guidance, Salesforce's stock has declined approximately 18% in 2025, while the S&P index remained unchanged [7]