Why Salesforce Stock Is Slipping Today

Salesforce (NYSE: CRM) stock is losing a bit of ground today following the company's recent fourth-quarter report. The software specialist's share price was down 1% as of 1:15 p.m. ET. The stock had been off as much as 4.8% earlier in trading.

Salesforce published its fiscal Q4 numbers after the market closed yesterday, reporting mixed results. While earnings came in better than anticipated, sales came in under Wall Street's expectations. The company's forward guidance also missed Wall Street's target.

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Salesforce stock slips on Q4 sales miss

Salesforce posted non-GAAP (generally accepted accounting principles) adjusted earnings per share of $2.78 in the fourth quarter of its last fiscal year, which ended Jan. 31. The performance surpassed the average analyst estimate's call for adjusted earnings per share of $2.60, but the company's $9.99 billion in revenue missed the average analyst forecast by $50 million. Sales were up 7.5% year over year in the period, and adjusted earnings per share were up 21.4%.

Salesforce closed out its 2025 fiscal year with $900 million data cloud and artificial intelligence (AI) revenue, representing an increase of 120% year over year. Despite the pullback for the stock today, the company's Q4 numbers looked good on most fronts -- and its AI initiatives continued to show encouraging momentum.

What's next for Salesforce?

For the current fiscal year, Salesforce is guiding for sales between $40.5 billion and $40.9 billion -- representing growth of 7.5% year over year at the midpoint of the target. Meanwhile, the average analyst estimate had called for sales of roughly $41.4 billion in the period.

The company also said that it expected to post an adjusted operating margin of 34% for the year and deliver growth between 10% and 11% for operating cash flow. It's possible that Salesforce is being conservative with its outlook, but things generally seem to be on the right track for the business.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Salesforce. The Motley Fool has a disclosure policy.