Salesforce Inc. experienced a 5% drop in share value during after-hours trading on Wednesday, following the release of its fiscal fourth-quarter earnings. Despite reporting solid results-outperforming earnings per share expectations-the company’s fiscal 2027 revenue forecast fell short of Wall Street estimates. In the fourth quarter ending January 31, Salesforce’s revenue grew by 12% year over year, marking its most robust growth in two years, although this growth failed to alleviate investor concerns.
The company reported adjusted earnings of $3.81 per share, surpassing the expected $3.04. Revenue reached $11.20 billion, slightly below the projected $11.18 billion. Salesforce’s net income rose to $1.94 billion, or $2.07 per share, compared to $1.71 billion, or $1.75 per share, from the same quarter last year. The adjusted figures excluded stock-based compensation, amortization expenses, and restructuring costs.
Salesforce also announced a substantial $50 billion share buyback plan, but this news did little to buoy investor sentiment. As of Wednesday’s close, Salesforce shares had seen a 28% decline in 2026, contrasting sharply with a 1% gain in the S&P 500 index.
The company’s current remaining performance obligation, accounting for contracted but unrecognized revenue and unbilled amounts, stood at $35.1 billion-beating the StreetAccount consensus of $34.53 billion. For the upcoming first fiscal quarter, Salesforce anticipates an adjusted earnings per share range of $3.11 to $3.13, with projected revenue between $11.03 billion and $11.08 billion. This guidance is above analysts’ expectations of $3.00 per share and $10.99 billion in revenue.
Looking ahead to fiscal 2027, Salesforce expects adjusted earnings per share to be between $13.11 and $13.19, with projected revenue between $45.8 billion and $46.2 billion-a growth forecast of 10% to 11%. Analysts were predicting $13.12 per share on revenues of $46.06 billion.
Investor anxiety has been heightened as concerns mount over the impact of generative artificial intelligence on major software companies’ growth trajectories. A notable example was IBM, whose stock plummeted 13% following a concerning blog post from Anthropic regarding its AI tools.
In the past quarter, Salesforce also unveiled an AI-enabled Slackbot for paying clients and completed its $8 billion acquisition of Informatica, contributing $399 million in revenue. The company has raised its revenue target for fiscal 2030 to $63 billion, surpassing earlier estimates of over $60 billion, a figure that also reflects Informatica’s impact.
Salesforce is focused on promoting its Agentforce AI technology, aimed at automating customer services and other corporate functions. Revenue from Agentforce reached an annualized rate exceeding $800 million during the quarter. Morgan Stanley analysts, maintaining a “buy” rating on Salesforce stock, noted that discussions with partners indicate early growth opportunities in this sector.
The company also benefitted from its stake in Anthropic, achieving an impressive $811 million gain from strategic investments-up significantly from $96 million in the previous year. Executives will elaborate on these results in an “earnings show” conference call alongside leaders from SharkNinja and Wyndham Hotels & Resorts, scheduled for 5 p.m. ET. As Salesforce navigates these challenges and opportunities, the market will be keenly watching to see how it adapts in a rapidly evolving industry landscape.
Original Source: https://www.cnbc.com/2026/02/25/salesforce-crm-q4-earnings-report-2026.html
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Publish Date: 2026-02-26 03:16:00
