Salesforce Q4 Earnings Beat Expectations with $50 Billion Buyback
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy CRM?
Source: Benzinga
- Strong Earnings Performance: Salesforce reported Q4 revenue of $11.2 billion, exceeding the $11.18 billion consensus, with adjusted EPS of $3.81 significantly surpassing the $3.04 estimate, indicating robust market performance.
- Share Buyback Initiative: The company announced a $50 billion share repurchase program, replacing all prior authorizations, aimed at enhancing shareholder value and boosting market confidence, despite a 19.52% decline in stock price year-to-date.
- Optimistic Future Guidance: Salesforce guided Q1 fiscal 2027 revenue between $11.03 billion and $11.08 billion, above analyst expectations, with full-year revenue projected at $45.8 billion to $46.2 billion, showcasing ongoing growth potential.
- Analyst Ratings Remain Positive: While some analysts lowered their price targets, the overall sentiment remains bullish, with HSBC dismissing broader sector fears and suggesting that software companies are likely to benefit from AI advancements.
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Analyst Views on CRM
Wall Street analysts forecast CRM stock price to rise
39 Analyst Rating
29 Buy
9 Hold
1 Sell
Moderate Buy
Current: 193.080
Low
223.00
Averages
326.40
High
405.00
Current: 193.080
Low
223.00
Averages
326.40
High
405.00
About CRM
Salesforce, Inc. is a provider of customer relationship management (CRM) technology. The Company helps organizations of any size reimagine their business for the world of artificial intelligence (AI). With Agentforce, its platform, organizations can bring humans together with AI agents to drive customer success on one deeply unified platform. With the Salesforce platform, it delivers a single source of truth, connecting customer data with integrated AI across systems, apps and devices to help companies sell, service, market and conduct commerce from anywhere. Agentforce is a new layer of the Salesforce platform that enables companies to build and deploy AI agents that can respond to inputs, make decisions and take action autonomously across business functions. Agentforce includes a suite of customizable agents for use across sales, service, marketing and commerce. Datablazer is a data-driven innovator, which leverages the Company’s platform to unlock insights and drive decisions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Salesforce's Continued Stock Decline
- Poor Stock Performance: Salesforce's stock has fallen 27% this year, nearing a three-year low, despite the company's positioning as a beneficiary of AI, indicating market concerns about its future growth.
- Earnings Beat Expectations: On February 25, Salesforce reported fourth-quarter earnings with revenue of $11.2 billion, a 12% year-over-year increase, slightly exceeding analyst expectations of $11.18 billion, while adjusted earnings per share were $3.81, significantly above the $3.04 expected by Wall Street.
- Future Growth Projections: The company projects a revenue increase of about 10% to 11% for the new fiscal year, which, while decent, appears modest given the context of AI-related opportunities that Salesforce has been promoting.
- Increased Market Competition: Despite strong earnings, there are doubts about whether Salesforce's software will continue to provide sufficient value to retain customers, as AI's rise could intensify competition and threaten demand for Salesforce's offerings.
See More
US Stocks Under Pressure Amid Rising Oil Prices
- Oil Price Surge Pressures Markets: The S&P 500 index fell by 0.67% as WTI crude prices surged over 6% to a 13.5-month high due to disruptions from the Iran war, exacerbating inflation concerns and weighing on stock performance.
- Positive Economic Data: Despite market pressures, initial jobless claims remained steady at 213,000, below the expected 215,000, indicating a resilient labor market, while Q4 nonfarm productivity rose by 2.8%, surpassing expectations of 1.9%, providing some support to the market.
- Optimistic Earnings Outlook: With over 90% of S&P 500 companies reporting, 73% exceeded expectations, and Q4 earnings growth is projected at 8.4%, reflecting strong corporate profitability that may support a market rebound in the future.
- Escalating Geopolitical Risks: Iran has pledged to escalate retaliation, and the closure of the Strait of Hormuz has tightened global oil supplies, pushing prices higher and leading to more cautious economic growth expectations in the market.
See More
Tech Stocks Rebound While Airline Shares Decline
- Tech Sector Recovery: The iShares Expanded Tech-Software Sector ETF (IGV) rose over 2%, with Salesforce up 5% and Microsoft and Oracle each gaining 1%, indicating a rebound in investor confidence towards tech companies previously impacted by AI fears, suggesting a potential improvement in market sentiment.
- Travel Stocks Surge: Expedia's shares jumped nearly 11% and Booking Holdings rose about 8% as OpenAI scaled back its direct shopping plans within ChatGPT, alleviating concerns over potential disruptions to booking sites, signaling a recovery in market confidence in the travel sector.
- Airline Stocks Under Pressure: United Airlines and Delta Air Lines saw their shares tumble 7% as oil prices resumed their ascent, with Southwest Airlines down over 6%, reflecting the direct impact of oil price volatility on the airline industry, which may lead to increased operating costs and profit compression.
- Victoria's Secret Plummets: The lingerie retailer's stock fell 15% after projecting free cash flow of $220 million to $250 million by January 2027, significantly below analysts' consensus estimate of $301.9 million, highlighting financial pressures and declining market confidence facing the company.
See More
Salesforce Q4 Earnings Beat Expectations with $50 Billion Buyback
- Strong Earnings Performance: Salesforce reported Q4 revenue of $11.2 billion, exceeding the $11.18 billion consensus, with adjusted EPS of $3.81 significantly surpassing the $3.04 estimate, indicating robust market performance.
- Share Buyback Initiative: The company announced a $50 billion share repurchase program, replacing all prior authorizations, aimed at enhancing shareholder value and boosting market confidence, despite a 19.52% decline in stock price year-to-date.
- Optimistic Future Guidance: Salesforce guided Q1 fiscal 2027 revenue between $11.03 billion and $11.08 billion, above analyst expectations, with full-year revenue projected at $45.8 billion to $46.2 billion, showcasing ongoing growth potential.
- Analyst Ratings Remain Positive: While some analysts lowered their price targets, the overall sentiment remains bullish, with HSBC dismissing broader sector fears and suggesting that software companies are likely to benefit from AI advancements.
See More
Stocks Plunge as Oil Prices Surge Amid Geopolitical Tensions
- Market Decline: On Thursday, the Dow Jones Industrial Average plummeted over 800 points, primarily due to rising oil prices, with U.S. crude briefly exceeding $79 per barrel, marking the highest level since June 2025, indicating the market's sensitivity to geopolitical tensions.
- Oil Price Volatility: Iran's missile strike on an oil tanker and subsequent closure of the Strait of Hormuz, along with threats to attack vessels in the area, have heightened market anxiety, prompting investors to navigate this volatile environment with caution.
- Costco Membership Concerns: Costco shares fell nearly 2.5% ahead of its earnings report, despite strong same-store sales momentum; however, declining membership renewal rates, particularly among online sign-ups, pose a challenge to the company's long-term growth prospects.
- Salesforce Stock Recovery: Salesforce shares rose nearly 5.5%, potentially signaling a rotation back into software stocks; while its core business faces pressure, Jim Cramer emphasized the positive outlook for Agentforce in the AI sector, suggesting a glass-half-full perspective on the company's future.
See More
Software Stocks Rally Amid Market Turmoil
- Software Stock Recovery: The iShares Expanded Tech-Software Sector ETF (IGV) surged nearly 8% this week, indicating signs of recovery in the software sector despite broader market turmoil due to U.S.-Iran war fears.
- Microsoft's Strong Performance: Microsoft shares rose nearly 5% this week, making it the best performer among the Magnificent Seven, as investors viewed the recent market selloff as a buying opportunity, reflecting renewed confidence in large-cap tech stocks.
- Improved Market Sentiment: Although software stocks fell in January and February due to AI concerns, analysts believe the selloff may have been overly pessimistic, with the software sector's fundamentals remaining solid and a potential re-rating on the horizon.
- Investor Confidence Rebuilding: Deutsche Bank strategists noted that the information technology sector's valuations have returned to levels seen during the 2022 selloff, indicating a recovery in market risk appetite for software stocks, although growth potential may be limited.
See More
Analysis of Salesforce's Continued Stock Decline
- Poor Stock Performance: Salesforce's stock has fallen 27% this year, nearing a three-year low, despite the company's positioning as a beneficiary of AI, indicating market concerns about its future growth.
- Earnings Beat Expectations: On February 25, Salesforce reported fourth-quarter earnings with revenue of $11.2 billion, a 12% year-over-year increase, slightly exceeding analyst expectations of $11.18 billion, while adjusted earnings per share were $3.81, significantly above the $3.04 expected by Wall Street.
- Future Growth Projections: The company projects a revenue increase of about 10% to 11% for the new fiscal year, which, while decent, appears modest given the context of AI-related opportunities that Salesforce has been promoting.
- Increased Market Competition: Despite strong earnings, there are doubts about whether Salesforce's software will continue to provide sufficient value to retain customers, as AI's rise could intensify competition and threaten demand for Salesforce's offerings.
See More
US Stocks Under Pressure Amid Rising Oil Prices
- Oil Price Surge Pressures Markets: The S&P 500 index fell by 0.67% as WTI crude prices surged over 6% to a 13.5-month high due to disruptions from the Iran war, exacerbating inflation concerns and weighing on stock performance.
- Positive Economic Data: Despite market pressures, initial jobless claims remained steady at 213,000, below the expected 215,000, indicating a resilient labor market, while Q4 nonfarm productivity rose by 2.8%, surpassing expectations of 1.9%, providing some support to the market.
- Optimistic Earnings Outlook: With over 90% of S&P 500 companies reporting, 73% exceeded expectations, and Q4 earnings growth is projected at 8.4%, reflecting strong corporate profitability that may support a market rebound in the future.
- Escalating Geopolitical Risks: Iran has pledged to escalate retaliation, and the closure of the Strait of Hormuz has tightened global oil supplies, pushing prices higher and leading to more cautious economic growth expectations in the market.
See More
Tech Stocks Rebound While Airline Shares Decline
- Tech Sector Recovery: The iShares Expanded Tech-Software Sector ETF (IGV) rose over 2%, with Salesforce up 5% and Microsoft and Oracle each gaining 1%, indicating a rebound in investor confidence towards tech companies previously impacted by AI fears, suggesting a potential improvement in market sentiment.
- Travel Stocks Surge: Expedia's shares jumped nearly 11% and Booking Holdings rose about 8% as OpenAI scaled back its direct shopping plans within ChatGPT, alleviating concerns over potential disruptions to booking sites, signaling a recovery in market confidence in the travel sector.
- Airline Stocks Under Pressure: United Airlines and Delta Air Lines saw their shares tumble 7% as oil prices resumed their ascent, with Southwest Airlines down over 6%, reflecting the direct impact of oil price volatility on the airline industry, which may lead to increased operating costs and profit compression.
- Victoria's Secret Plummets: The lingerie retailer's stock fell 15% after projecting free cash flow of $220 million to $250 million by January 2027, significantly below analysts' consensus estimate of $301.9 million, highlighting financial pressures and declining market confidence facing the company.
See More
Salesforce Q4 Earnings Beat Expectations with $50 Billion Buyback
- Strong Earnings Performance: Salesforce reported Q4 revenue of $11.2 billion, exceeding the $11.18 billion consensus, with adjusted EPS of $3.81 significantly surpassing the $3.04 estimate, indicating robust market performance.
- Share Buyback Initiative: The company announced a $50 billion share repurchase program, replacing all prior authorizations, aimed at enhancing shareholder value and boosting market confidence, despite a 19.52% decline in stock price year-to-date.
- Optimistic Future Guidance: Salesforce guided Q1 fiscal 2027 revenue between $11.03 billion and $11.08 billion, above analyst expectations, with full-year revenue projected at $45.8 billion to $46.2 billion, showcasing ongoing growth potential.
- Analyst Ratings Remain Positive: While some analysts lowered their price targets, the overall sentiment remains bullish, with HSBC dismissing broader sector fears and suggesting that software companies are likely to benefit from AI advancements.
See More
Stocks Plunge as Oil Prices Surge Amid Geopolitical Tensions
- Market Decline: On Thursday, the Dow Jones Industrial Average plummeted over 800 points, primarily due to rising oil prices, with U.S. crude briefly exceeding $79 per barrel, marking the highest level since June 2025, indicating the market's sensitivity to geopolitical tensions.
- Oil Price Volatility: Iran's missile strike on an oil tanker and subsequent closure of the Strait of Hormuz, along with threats to attack vessels in the area, have heightened market anxiety, prompting investors to navigate this volatile environment with caution.
- Costco Membership Concerns: Costco shares fell nearly 2.5% ahead of its earnings report, despite strong same-store sales momentum; however, declining membership renewal rates, particularly among online sign-ups, pose a challenge to the company's long-term growth prospects.
- Salesforce Stock Recovery: Salesforce shares rose nearly 5.5%, potentially signaling a rotation back into software stocks; while its core business faces pressure, Jim Cramer emphasized the positive outlook for Agentforce in the AI sector, suggesting a glass-half-full perspective on the company's future.
See More
Software Stocks Rally Amid Market Turmoil
- Software Stock Recovery: The iShares Expanded Tech-Software Sector ETF (IGV) surged nearly 8% this week, indicating signs of recovery in the software sector despite broader market turmoil due to U.S.-Iran war fears.
- Microsoft's Strong Performance: Microsoft shares rose nearly 5% this week, making it the best performer among the Magnificent Seven, as investors viewed the recent market selloff as a buying opportunity, reflecting renewed confidence in large-cap tech stocks.
- Improved Market Sentiment: Although software stocks fell in January and February due to AI concerns, analysts believe the selloff may have been overly pessimistic, with the software sector's fundamentals remaining solid and a potential re-rating on the horizon.
- Investor Confidence Rebuilding: Deutsche Bank strategists noted that the information technology sector's valuations have returned to levels seen during the 2022 selloff, indicating a recovery in market risk appetite for software stocks, although growth potential may be limited.
See More
