Salesforce Earnings
SALESFORCE …..HOW IS IT GOING????
Salesforce (CRM) reported record fourth-quarter results for fiscal year
2026 on February 25, 2026, significantly beating earnings expectations driven by strong adoption of its Agentforce AI platform. While earnings per share (EPS) surged 37% year-over-year, the company provided a cautious revenue outlook for fiscal year 2027, leading to a mixed market reaction.
Q4 and Full-Year Fiscal 2026 Results
- Quarterly Revenue: $11.2 billion, up 12% year-over-year, slightly exceeding analyst estimates of $11.18 billion.
- Adjusted EPS: $3.81, a massive 24.9% beat over the forecasted $3.05.
- Full-Year Revenue: $41.5 billion, a 10% increase compared to fiscal 2025.
- Operating Margin: Achieved a record non-GAAP operating margin of 34.2% for the quarter.
- Remaining Performance Obligation (RPO):Totaled $72.4 billion (up 14%), with current RPO at $35.1 billion (up 16%), indicating a robust future pipeline.
Key Business Insights
- Agentforce Momentum: The AI agent platform reached an annual recurring revenue (ARR) of $800 million in Q4, representing a 169% year-over-year increase.
- Shareholder Returns: Salesforce returned $14.3 billion to shareholders in FY26 through $12.7 billion in buybacks and $1.6 billion in dividends.
- Dividend Increase: The board raised the quarterly dividend by 5.8% to $0.44 per share, payable on April 23, 2026.
- Informatica Integration: The recently completed acquisition contributed approximately 4 percentage points to current RPO growth in Q4.
For the upcoming fiscal year ending January 31, 2027, Salesforce issued the following projections:
- Total Revenue: $45.8 billion to $46.2 billion, representing 10%–11% growth, which trailed some analyst expectations.
- Non-GAAP EPS: Expected between $13.11 and $13.19.
- Free Cash Flow: Projected to exceed $16.5 billion.
Salesforce Annual Revenue Trend (Billions USD)
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