Salesforce’s Focus on Data Cloud Amid Challenging Macro Environment

Salesforce is concentrating on its Data Cloud solutions while navigating a challenging macroeconomic landscape after reporting a weaker-than-expected first quarter. Salesforce Focuses on Data Cloud

In a recent note, Baird analysts Rob Oliver and Patrick Schulz highlighted Salesforce’s emphasis on its Data Cloud solution: “Salesforce is keenly focused on its Data Cloud solution. The company has cited strength, but overall checks have been mixed. While not material from a revenue perspective, we believe this will remain a top focus area.”

Baird’s insights followed a dinner meeting with Salesforce’s investor relations team, where much of the discussion centered on the macroeconomic challenges affecting the company.

Salesforce shares fell sharply late last month after the enterprise software giant reported fiscal first-quarter results and guidance that missed estimates. Although the stock has partially recovered, it was down about 2% during late market trading on Wednesday and was removed from BofA’s U.S. 1 List the same day.

Salesforce Focuses on Data Cloud

Despite the revenue miss in the first quarter of fiscal year 2025, Salesforce reiterated its full-year guidance, citing confidence driven by several tailwinds, including Data Cloud, pricing/packaging, MuleSoft, regional strengths, and industry-specific offerings. These factors are helping to offset ongoing macroeconomic pressures, according to Oliver and Schulz.

“Salesforce has not been alone in calling out a more challenging macro environment,” the analysts noted, referencing similar trends cited by companies like Couchbase (BASE), MongoDB (MDB), and Workday (WDAY). “We believe the company will need to report a solid quarter before investor confidence builds.”

Baird maintains its Outperform rating on Salesforce with a price target of $295.

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