Salesforce Inc (NYSE:CRM, XETRA:FOO) heads into its fiscal first quarter earnings report on May 27, with analysts at UBS pointing to a mixed demand environment for enterprise software and limited signs of near-term acceleration in bookings trends.
UBS wrote recent channel checks with roughly 25 enterprise IT executives and partners suggest IT spending growth remains constrained, particularly for non-AI application software
The firm characterized the broader SaaS demand backdrop as challenging and noted conditions may have tightened over the past few months. For Salesforce specifically, UBS wrote that its latest checks were “mixed to in-line,” without evidence of a meaningful pickup in bookings that would support the company’s expectation for stronger growth in the second half of the fiscal year. By product area, feedback on Sales Cloud and Service Cloud was described as steady, while sentiment around Marketing Cloud, Commerce Cloud, Tableau, and MuleSoft remained mixed.
Responses regarding Agentforce were also described as more mixed compared with the prior quarter. The analysts believe this combination leaves the bar for a second-half growth reacceleration relatively high, given the current demand environment. They added there is uncertainty around whether Salesforce can sustain its guidance for improving growth through the remainder of the year if enterprise software spending conditions do not strengthen.