Shares of Salesforce experienced volatility in extended trading Wednesday following the release of better-than-expected fiscal first-quarter results and forward guidance from the software company.

The company’s performance compared to LSEG consensus estimates is as follows:

• Earnings per share: $2.58 adjusted vs. 2.54 expected
• Revenue: $9.83 billion vs. $9.75 billion expected

According to a statement, revenue at Salesforce increased by 7.6% year-over-year for the quarter ending April 30.Net income remained relatively stable at $1.54 billion,or $1.59 per share,compared to $1.53 billion, or $1.56 per share, in the prior year.

Despite President Donald Trump‘s announcement of widespread tariffs on goods imported into the U.S. in early April, Co-founder and CEO Marc Benioff expressed optimism about the company’s quarterly performance. He highlighted the recently announced plan to acquire data management firm Informatica for $8 billion.

This acquisition would be the largest for Salesforce as the $27.1 billion Slack deal in 2021. The Slack acquisition represented the peak of Salesforce‘s buyout activity under Benioff‘s leadership. However, activist investors voiced concerns regarding the company’s spending and slowing revenue growth.

Salesforce responded by cutting 10% of its workforce. Benioff announced the dissolution of the board’s mergers and acquisitions committee.The then-finance chief stated the company was ahead of schedule in reaching its margin expansion goal by two years, and Salesforce initiated dividend payments to shareholders.

The initial response to the Informatica announcement was generally positive. Stifel analysts, led by J. parker Lane, noted that “Salesforce is paying a reasonable multiple for the asset, in our view, and the deal should be more easily digested by investors than some of the company’s large deals in the past (i.e. Slack),” adding that the investment bank has a buy rating on Salesforce shares.

Benioff mentioned during a conference call with analysts that he had been discussing the potential integration of Informatica and Salesforce for approximately 20 years. he also noted that deal talks occurred last year,but the two companies ultimately decided to walk away.

Informatica was established in 1993 and became a public company in 1999. In 2015, Permira Funds and Canada Pension Plan Investment Board acquired the company, with Microsoft and salesforce purchasing stakes at that time.It returned to the public markets in 2021. Earlier this month, Informatica reported that its revenue for the