CRM 1Q25: Modest Raise on FX Tailwinds, Agentforce Still in Early Stages

We published our CRM Preview ahead of CRM's earnings release, and CRM's performance was largely in line with our Preview.

Takeaways

• Our prior estimates didn’t fully account for FX, which explains part of the gap—but overall, the quarter wasn’t particularly impressive.

• Q1 revenue and cRPO both beat consensus by ~1% on a constant currency (cc) basis. FCF reached $6.3B, $400M ahead of expectations.

• Q2 revenue guidance of +8–9% YoY (+7–8% cc) and cRPO growth of +10% YoY (+9% cc) came in slightly below street expectations.

• FY26 full-year revenue guidance was raised by $450M, with ~$400M attributed to FX benefits. Adjusted for Q1 upside, the raise appears quite conservative.

Agentforce: Limited Traction in Q1

• Consistent with prior checks, Agentforce saw minimal progress this quarter:

  • Combined ARR for Data Cloud and Agentforce reached $1B, up $100M QoQ.

  • Management disclosed Agentforce ARR for the first time at $100M—just ~0.26% of quarterly revenue—tracking closely with our prior estimates.

  • Agentforce had 4,000 paying customers out of 8,000 total projects (50% conversion), up from 3,000 last quarter. The incremental customer growth was modest, in line with field feedback.

• · An executive at a leading cloud platform commented in our survey: “Salesforce is pushing Agentforce into large enterprise accounts. That’s critical for long-term monetization—so right now, many deployments are essentially free (likely referring to POCs/pilots).”

Enterprise AI Adoption Still Faces Headwinds