Salesforce Delivers Record Q4 Results, Unveils $50B Buyback

Salesforce reported record Q4 revenue of $11.2B, beating estimates with 12% growth. Agentforce ARR surged 169% to $800M. The company unveiled a $50B buyback despite cautious FY27 guidance.

Salesforce delivered record fourth-quarter results for fiscal year 2026 on February 25, reporting revenue of $11.2 billion, up 12% year-over-year and slightly above analyst expectations of $11.18 billion. Earnings per share of $3.81 significantly surpassed the forecasted $3.05, marking a 24.9% positive surprise. For the full fiscal year, revenue reached $41.5 billion, representing 10% growth.

The company's AI momentum emerged as the standout story. Agentforce and Data 360 annual recurring revenue (ARR) exceeded $2.9 billion, growing more than 200% year-over-year. Agentforce alone contributed approximately $800 million in ARR, up 169% from the previous year. CEO Marc Benioff emphasized that "agentic AI has become Salesforce's new growth engine," noting that 75% of the company's top 100 deals in Q4 included both Agentforce and Data 360.

Current remaining performance obligation (CRPO) rose 16% to $35.1 billion, while total remaining performance obligation reached $72 billion, up 14%. The company returned more than $14 billion, or 99% of free cash flow, to shareholders in fiscal 2026.

Looking ahead, Salesforce guided fiscal 2027 revenue between $45.8 billion and $46.2 billion, representing 10-11% growth. However, this includes approximately 3 percentage points from the Informatica acquisition, implying organic growth of 7-8%. The company raised its fiscal 2030 revenue target to $63 billion.

Despite the strong quarter, shares fell approximately 5% in after-hours trading as investors digested the cautious organic growth outlook. Analysts remain divided, with Bernstein maintaining an underperform rating citing "mature business in a mature market," while Goldman Sachs retained a buy rating, emphasizing that "differentiated outcomes with Agentforce" will be the key driver.

In response to the stock price decline, Salesforce announced a massive $50 billion share repurchase authorization and a 5.8% dividend increase to $0.44 per share. Benioff characterized the current stock price as "quite low," positioning the buyback as a strategic opportunity.

The quarter underscores Salesforce's position at the center of the "software crisis" narrative solid fundamentals with AI-driven growth potential, yet facing investor skepticism about core business momentum in an uncertain macroeconomic environment.