TLDR
- Q4 revenue at Salesforce climbed 12% from the previous year to $11.20 billion, surpassing analyst projections
- The company’s fiscal 2027 revenue outlook of $45.8B–$46.2B missed Street expectations by a narrow margin
- A massive $50 billion stock repurchase program was greenlit, with management pointing to undervaluation
- Annual recurring revenue from Agentforce crossed $800 million, up significantly from $540 million previously
- The company boosted its fiscal 2030 revenue projection to $63 billion from $60 billion
Despite delivering impressive fourth-quarter results Wednesday, Salesforce shares tumbled approximately 5% during extended trading hours as its annual revenue forecast slightly missed analyst expectations.
Revenue for the three months concluded January 31 reached $11.20 billion, marking a 12% increase from the same period last year. This represents the company’s strongest growth rate in 24 months.
Adjusted profit per share reached $3.81, significantly exceeding the LSEG consensus projection of $3.04. The company’s net profit improved to $1.94 billion compared with $1.71 billion in the prior-year quarter.
Current remaining performance obligations — representing future contracted revenue scheduled for recognition within 12 months — totaled $35.1 billion, surpassing the Street’s $34.53 billion estimate.
Looking ahead to fiscal 2027, management projected revenue between $45.8 billion and $46.2 billion. Wall Street had anticipated $46.06 billion. The guidance suggests growth of approximately 10% to 11%, comparable to the previous year’s trajectory.
Chief Executive Marc Benioff expressed confidence during Wednesday’s announcement. He characterized the recent stock decline as a prime buying opportunity and unveiled a substantial $50 billion stock repurchase authorization.
“This is not our first SaaS-pocalypse,” Benioff remarked during the earnings call. “We are going to make it through this one as well.”
The new repurchase program supersedes all previous unused authorizations. Through Wednesday’s market close, CRM shares had declined approximately 28% year-to-date in 2026, hitting a three-year bottom earlier this month.
Agentforce Gains Momentum
The company’s AI automation offering, Agentforce, generated annualized revenue surpassing $800 million in the quarter, representing a significant increase from the prior quarter’s $540 million. Salesforce’s platform secured 29,000 transactions during the period, reflecting a 50% quarter-over-quarter increase.
Benioff highlighted SharkNinja and Wyndham Hotels & Resorts as enterprises rapidly deploying additional agents. Morgan Stanley analysts, maintaining a buy-equivalent rating, observed that partner discussions “continue to indicate we are in the early innings.”
Strategic Acquisitions Drive Growth Targets Higher
Salesforce finalized its $8 billion purchase of Informatica within the quarter. The data management platform generated $399 million in revenue, contributing to an upward revision of the company’s fiscal 2030 revenue target to $63 billion from the previous $60 billion goal. Analysts had projected only $59.07 billion.
Additionally, the enterprise recorded an $811 million gain from strategic investment holdings, predominantly from its position in Anthropic. This compares favorably to $96 million recorded in the comparable year-earlier period.
Benioff disclosed that Salesforce has deployed approximately $330 million into Anthropic, representing “almost about 1%” of the AI company, with an additional $100 million committed in the latest funding round.
According to Benioff, five enterprises previously using ServiceNow migrated to Salesforce’s IT service management solution during the quarter.
For the first quarter of fiscal 2028, management projected revenue ranging from $11.03 billion to $11.08 billion, with adjusted earnings per share between $3.11 and $3.13, both figures exceeding analyst consensus estimates.
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