What do we make of these numbers from Salesforce? The cloud software kingpin with a stock that's been under pressure for well over a year from AI worries. If they're closed today, Salesforce report a strong set of numbers. Revenue growth reaccelerated coming in higher than expected. They posted a very big earnings per share beat, though most of that was from a bountiful $27 billion buyback. But the stock couldn't get the traction in after hours trading. Possibly because the remaining performance obligation, sort of like the backlog, came in light, fueling fears that Salesforce might be having trouble signing customers to longer contracts. Even as though I think they would beg to disagree. There's a lot to consider here, especially with the stock so far off its highs and a buyback that's one of the biggest in the entire market. So, let's go straight to the source. Mr. Benioff, welcome back to Mad Money. All right, Mark, you got sharply better than expected earnings. You are guiding for very good numbers in the second half. I'm trying to figure out the disconnect between a stock that looks like it's down and what I see is very big numbers. Help me here.
Jim, it's the SaaS apocalypse. So, welcome. We're all drinking SaaS Barillas here. But yes, you're right. Revenue is up very significantly as you can see. And we have just a fantastic quarter, up 14% year-over-year on revenue. It's our first $11 billion quarter, Jim. Isn't that amazing?
Oh, I think it's incredible. And I know you bought back a lot of stock because you believe the stock is inexpensive. Someone might say, 'Listen, you bought back a lot of stock and the stock is just keep dropping. What's the point of buying back the stock?'
Well, Jim, you're right. We can look around for great opportunities in the market, but Salesforce is probably the greatest and we are excited to be able to return that to our investors. In fact, it's one of the reasons why you saw that the Q1 GAAP diluted net income per share was $2.42, up 52% year-over-year, Jim. That's non-GAAP diluted net income per share of $3.88. That was up 50%. We've never seen numbers of that. It's really because we've been able to buy back the stock and return that to our investors in a material way.
Okay. Are you happy with how the Agent Force is going? Because I know that you use tokens as one method. You also use billions as another method. I'm trying to get my arms around what the tokens method looks like. To me, the agent revenue number is pretty good.
Well, you saw Agent Force revenues now over a billion dollars, Jim. That's incredible. And Agent Force is now on all of our products from sales to service. Even inside our core applications now, we have Agent Force co-worker that lets our customers work with Agent Force directly, giving them tremendous capability to do things they've just never been able to do before.
When I call CVS, is it possible that I might be speaking to an agent who can route me better than someone who just puts me on hold?
Well, you know that CVS is one of our largest customers and we're really excited to be announcing that they're using Agent Force and doing it in incredible new ways. We've seen healthcare continue to look for ways to connect with their customers using agentic technology. You probably also saw UCLA Health. You can even go to their website, uclahealth.org, and you can use Agent Force to kind of get information on directly working with the physicians and the technology available there.
All right, so Mark, let's talk about this SaaS boost, whatever you want to call it. There are people who are saying, well, listen, you're being disrupted. You're being disrupted by these new AI platforms and what it's doing is making it harder for you to get longer deals at good price increases. What do you say to that?
Well, Jim, I mean, you can see we just had a record quarter, it's kind of, it's really incredible. And when you see the number of million-dollar transactions that happened in the quarter, well, this was our record level. We've never seen this many large transactions happen. And also I think we're going to see in the second quarter, you know, attrition is probably coming down. A lot of the predictions that are happening in regards to the SaaS apocalypse just hasn't happened. I mean, it really, you think about, you look at Slack and the incredible growth rate of Slack. It's been really driven by the AI wave and the ability now for these companies to do things that they have not been able to do before. All of this is really made possible by this tremendous new AI technology.
All right. Should I be worried about Tableau, which I think might be more in the crosshairs of what we're talking about, or the commerce silo, which I always kind of liked and I know is very important near and dear to you.
Well, I think that when you look at Tableau, Jim, we just got done with Tableau Conference a couple weeks ago. The new Tableau is incredible and it's bolstered by this AI capability. That is the agentic capabilities now within Tableau. You can talk to Tableau. You can create Tableau capabilities in entirely new ways. That gives Tableau the same kind of Agent Force power that we now have inside all of our apps. See, at every level, all Salesforce apps, whether it's sales or service or marketing, whether it's analytics like Tableau, whether it's commerce, even whether it's Slack, are just all made powerful by this agentic platform. And now I think you saw that we've completed our transaction and we had a great first quarter here with Informatica. It was just incredible to see data perform so well in the quarter as well.
