Salesforce (CRM) is scheduled to release its second-quarter fiscal 2025 findings on August 28. According to the Wall Street Analysts Consensus Estimate, the company's second-quarter non-GAAP EPS is expected to be $2.35, representing a 10.9% year-over-year rise.
The bottom-line estimate may seem optimistic, but the actual situation is more complex, particularly in light of the (more than) 35 percent increase that Salesforce has regularly produced over the previous six quarters.
Salesforce Struggles To Grow
Salesforce, once a shining example of double-digit revenue growth, is currently experiencing a discernible slowdown. Compared to the 20%+ growth it consistently reported until fiscal 2022, the company barely made it into minimal double-digit rise territory in the first period of fiscal 2025. This is not merely a passing trend; it points to more serious issues facing Salesforce and the industry as a whole.
Several factors are combined to cause this slowdown. Due to geopolitical unrest and economic uncertainty, businesses are becoming more frugal with their IT spending. Budgets are getting tighter, big investments are delayed, and transactions are being scrutinized more. Salesforce has admitted to taking a while to negotiate deals and choosing to work on smaller and simpler projects than they once did.
