Salesforce and Snowflake both posted quarterly results that showcased robust artificial intelligence momentum, though forward-looking worries tempered enthusiasm. The two enterprise software names moved in tandem after their respective reports, highlighting a sector-wide push to monetize AI while grappling with legacy slowdowns and profitability questions.
Salesforce (CRM) jumped 8% to $191.10 on Friday after beating fiscal first‑quarter estimates. Revenue climbed 13% year‑over‑year to roughly $11.1 billion, fueled by its AI‑centric products. Annual recurring revenue from Agentforce and Data 360 reached nearly $3.4 billion, with Agentforce alone surging over 200%. CEO Marc Benioff called the period one of record revenue, deals, and cash flow, underlining the company’s pivot to AI‑first enterprise software.
However, a softer‑than‑expected second‑quarter revenue outlook of $11.27–$11.35 billion—just shy of the $11.36 billion consensus—raised concerns that top‑line growth may be plateauing. Executives noted uneven demand in marketing and commerce segments, while bookings missed estimates for the second consecutive quarter. The rise of consumption‑based AI pricing also threatens traditional per‑seat models, and competition from Microsoft and ServiceNow is intensifying.
Snowflake (SNOW) similarly soared over 7% to around $256 after reporting fiscal first‑quarter product revenue of $1.33 billion, up 34% from the prior year and well above its own $1.26 billion forecast. Adjusted EPS of $0.39 beat the $0.32 consensus. Management raised full‑year product revenue guidance to $5.84 billion, driven by almost universal AI adoption among its 13,912 customers—13,600 now use at least one AI product. Cortex AI, which lets enterprises connect their data to large language models, is at the center of that growth.
Still, Snowflake’s GAAP net loss of $295.5 million and rich valuation (price‑to‑sales ratio of 16.9) kept some investors cautious. Director Frank Slootman’s sale of 400,000 shares for about $93.4 million, although under a pre‑arranged plan, added to the cautionary signals. Analysts remain largely positive, with price targets raised as high as $325, yet the stock trades well below its 52‑week high of $280.67 and remains far from GAAP profitability.
