Salesforce (NYSE: CRM) closed fiscal 2026 with record fourth-quarter results, underscoring steady demand for its core cloud portfolio while highlighting how quickly its “agentic AI” strategy is becoming a material part of the story. The latest Salesforce earnings report delivered solid top-line growth, strong cash generation, and expanding performance obligations—yet the company’s initial FY2027 revenue outlook suggests management is still planning for a cautious enterprise spending environment.
Below is a breakdown of the published quarterly numbers and the forward guidance that investors are now using to frame expectations for CRM stock.
Q4 FY2026: Revenue Hits $11.2B, Subscription Growth Remains the Engine
For the fourth quarter ended January 31, 2026, Salesforce reported revenue of $11.2 billion, up 12% year over year. The business continues to be driven primarily by subscription & support revenue of $10.7 billion, which grew 13% year over year—a key metric for gauging the health of the recurring revenue base.
A major focus in this quarter’s release was contracted backlog strength:
- Remaining Performance Obligation (RPO): $72.4 billion, up 14% year over year
- Current RPO: $35.1 billion, up 16% year over year
RPO and current RPO matter because they help investors estimate how much contracted revenue is likely to convert into reported revenue over time. In a “show me” market for software valuations, expanding RPO can be as important as the quarter’s revenue beat.
Full-Year FY2026: $41.5B Revenue and $15B Operating Cash Flow
Salesforce finished fiscal 2026 with $41.5 billion in revenue, up 10% year over year. Profitability and cash flow were central highlights:
- GAAP operating margin: 20.1%
- Non-GAAP operating margin: 34.1%
- Operating cash flow: $15.0 billion, up 15% year over year
- Free cash flow: $14.4 billion, up 16% year over year
That level of cash generation gives Salesforce flexibility to invest in product expansion (especially AI), pursue acquisitions, and return capital to shareholders—without relying on aggressive leverage.
Shareholder Returns: New $50B Buyback and a Higher Dividend
Alongside the quarter, Salesforce emphasized capital returns:
- $14.3 billion returned to shareholders during FY2026
- $12.7 billion via share repurchases
- $1.6 billion via dividends
- A new $50 billion share repurchase authorization
- Quarterly dividend increased to $0.44 per share (up 5.8% year over year)
For long-term investors, this combination of high free cash flow and sizable buybacks can provide downside support—especially during periods when growth expectations reset.
AI Momentum: Agentforce and Data 360 Scale Up
Salesforce continues positioning itself as the platform for what it calls the “Agentic Enterprise,” where AI agents execute workflows across sales, service, marketing, and analytics.
Key AI-linked disclosures included:
- Agentforce ARR: $800 million, up 169% year over year
- Agentforce + Data 360 ARR: $2.9 billion, up over 200% year over year
- 29,000 Agentforce deals closed since launch (up 50% quarter over quarter)
- 2.4 billion Agentic Work Units delivered to date (up 57% quarter over quarter)
- ~19 trillion tokens processed all-time (up 5x year over year)
The strategic point: Salesforce is trying to turn AI from a feature into a monetizable consumption layer that expands attach rates, increases expansion activity in the installed base, and supports re-acceleration later in FY2027.
Salesforce Guidance: Q1 FY2027 Outlook and Full-Year FY2027 Targets
Investors typically react most strongly to forward guidance—because it sets the bar for future beats (or misses). Salesforce’s guidance includes the following:
Q1 FY2027 Guidance (Next Quarter)
- Revenue: $11.03B to $11.08B
- GAAP diluted EPS: $1.77 to $1.79
- Non-GAAP diluted EPS: $3.11 to $3.13
- Current RPO growth: ~14% (about 13% in constant currency)
This implies continued double-digit growth, supported by backlog conversion and ongoing subscription demand.
Full-Year FY2027 Guidance
- Revenue: $45.8B to $46.2B (about 10%–11% growth)
- Subscription & support revenue growth: slightly under 12%
- GAAP operating margin: 20.9%
- Non-GAAP operating margin: 34.3%
- GAAP diluted EPS: $7.85 to $7.93
- Non-GAAP diluted EPS: $13.11 to $13.19
- Operating cash flow growth: ~9%–10%
- Capital expenditures: about 1.5% of revenue
Management also reiterated expectations for organic revenue re-acceleration in the second half of FY2027, pointing to broader adoption of Agentforce and Data 360 as potential catalysts.
What to Watch Next for CRM Stock
From an investor perspective, the next few quarters likely hinge on three questions:
- Can AI bookings translate into durable revenue lift? ARR growth is encouraging, but the market will want to see consistent monetization mechanics.
- Does backlog strength keep expanding? RPO growth remains a critical signal for forward revenue visibility.
- Can margins hold while investing in AI? Salesforce’s margin targets are ambitious; execution will matter as AI compute and go-to-market costs evolve.
Conclusion
Salesforce’s Q4 FY2026 results showed resilient demand, strong cash flow, and expanding backlog—while the FY2027 guidance suggests a disciplined, measured approach to growth assumptions. The company is clearly betting that Agentforce and broader data/AI capabilities will drive re-acceleration in the back half of FY2027. For investors tracking Salesforce earnings and guidance, the core debate is no longer whether Salesforce can grow—it’s whether AI can lift growth quality and durability enough to justify a higher multiple again.
FAQ
When is Salesforce’s fiscal year end?
Salesforce’s fiscal year ends on January 31, which is why Q4 FY2026 covers the quarter ending January 31, 2026.
What were Salesforce’s key Q4 FY2026 numbers?
Revenue was $11.2B, subscription & support revenue was $10.7B, and total RPO was $72.4B.
What is Salesforce’s revenue guidance for FY2027?
Salesforce guided to $45.8B–$46.2B in FY2027 revenue.
What is Salesforce’s Q1 FY2027 revenue outlook?
Revenue guidance for Q1 FY2027 is $11.03B–$11.08B.
Why do investors focus on RPO?
RPO represents contracted revenue not yet recognized, offering a view into future revenue visibility and demand trends.
Disclaimer
This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. Financial figures are based on company-reported results and guidance at the time of publication and may change. Investing involves risk, including the possible loss of principal. Always do your own research and consider consulting a licensed financial advisor.
