Salesforce will release its first quarter financial report for the fiscal year 2025 after the close of trading on Wednesday.

First quarter financial report expectations

Analysts predict that Salesforce's revenue for the first quarter was $9.15 billion, slightly lower than the previous quarter but higher than the same period last year's $8.25 billion. The expected net profit is 1.44 billion US dollars, slightly lower than the previous quarter, but much higher than the same period last year's 199 million US dollars.

Diluted earnings per share (EPS) is expected to be $1.45, a significant increase from $0.20 in the same period last year. According to the documents submitted by the company to the Securities and Exchange Commission (SEC), the fourth quarter is usually the strongest season for Salesforce.

Data Cloud

Data cloud has become the focus, and enterprise customers are committed to utilizing data in the AI era. Salesforce reported in February this year that its data cloud annual recurring revenue was close to $400 million, almost doubling year-on-year.

Brian Millham, Chief Operating Officer of Salesforce, stated that this is the beginning of a new innovation cycle, and there will be a large-scale software purchasing frenzy in the coming years, which Salesforce will lead.

Investors will closely monitor the sustained strong growth of data cloud business, especially in the process of integrating AI with enterprise clients. Analysts at Bank of America Securities indicate that the AI product cycle is growing alongside data clouds.

Einstein 1

Salesforce is expected to benefit from the surge in demand for AI, with the launch of the Einstein 1 platform integrating AI into its products. However, Millham stated that Einstein 1 has little impact on income in the short term.

Although Einstein 1 is not expected to have a significant impact on revenue in the fiscal year 2025, Salesforce may update investors on customer adoption and share insights on when the platform will start generating revenue for the company. Citigroup analysts say they hope to see more signs of an enhanced demand environment and/or an increase in data cloud/GenAI momentum.