Salesforce Q4 Earnings Beat, Guidance Softens Outlook
Salesforce Q4 earnings showed record revenue and EPS but fiscal-2027 revenue guidance softened, prompting an afterhours slide and raising AI risk debate.
KEY TAKEAWAYS
- Record Q4 revenue $11.2 billion and adjusted EPS $3.81 topped estimates.
- Fiscal-2027 revenue guidance $12.0-12.1 billion implied slower growth and prompted an afterhours decline.
- Agentforce contributed $800 million ARR to $2.9 billion combined AI ARR and company authorized $50 billion buyback.
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Salesforce Inc. reported record fourth-quarter results on Feb. 25, 2026, with revenue of $11.2 billion, up 12.1% year-over-year, and adjusted earnings per share of $3.81, exceeding consensus. However, the company’s fiscal-2027 revenue guidance of $12.0–12.1 billion, implying 7.0–8.0% growth, fell short of expectations. Investor concern about AI’s impact on enterprise software contributed to a 3–4% decline in afterhours trading.
Record Quarter and Outlook
Salesforce said in a press release that its fourth-quarter revenue was roughly in line with estimates, while adjusted EPS topped forecasts by more than 25%. The company described its fiscal-2027 outlook as stable sales growth amid AI-related disruption. It also flagged a first-quarter revenue forecast above Wall Street expectations.
Agentforce and Data Cloud Momentum
The company highlighted strong growth in its AI-driven offerings, reporting combined annual recurring revenue (ARR) of $2.9 billion for Agentforce and Data 360, more than doubling year-over-year. Agentforce contributed $800 million of that ARR, up 169% year-over-year, while Informatica Cloud added $1.1 billion. Since launch, Agentforce has closed over 29,000 deals, with deal volume growing about 50% quarter-over-quarter. The platform served 11.14 trillion tokens in the quarter, indicating production-scale deployment. Agentforce ARR rose from $540 million in the prior quarter.
Buyback Authorization and Market Reaction
Salesforce authorized a $50 billion share buyback and maintained its quarterly dividend at $0.416 per share, reflecting a payout ratio of 22.16% and an annualized yield near 0.9%. Despite the record quarter and AI-related monetization gains, shares fell 3–4% in afterhours trading. The median analyst price target stood at $325.23, with 25 Buys, 13 Holds, and 1 Sell. Insider activity over the past six months included 288 trades, with three purchases and 285 sales.
The company’s moderated full-year guidance and ongoing investor anxiety about AI’s effect on software shifted focus to whether Agentforce’s momentum and the new capital-return plan can sustain growth.
