Salesforce Q4 Earnings Beat Expectations with Strong AI Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy CRM?
Source: Yahoo Finance
- Earnings Beat: Salesforce reported adjusted EPS of $3.81 for Q4, surpassing Wall Street's expectation of $3.05, indicating strong profitability, while revenue slightly exceeded expectations at $11.2 billion compared to the anticipated $11.17 billion.
- Optimistic Outlook: The company projects Q1 revenue between $11.03 billion and $11.08 billion, exceeding market expectations of $10.99 billion, suggesting a gradual recovery in revenue growth despite a slowdown in overall growth rates.
- Significant AI Growth: Salesforce's Agent Force annual run rate reached $800 million, up 169% year-over-year, with 29,000 deals closed this quarter, reflecting rapid development and increasing market acceptance of its AI offerings.
- Expanded Buyback Plan: Salesforce announced an increase in its share buyback authorization to $50 billion, demonstrating confidence in future growth while providing additional returns to shareholders, which could positively impact the stock price in the short term.
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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: 185.420
Low
223.00
Averages
326.40
High
405.00
Current: 185.420
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.
Salesforce Q4 Earnings Expectations
- Earnings Release Date: Salesforce is set to release its Q4 earnings after the market closes on February 25, with analysts forecasting earnings of $3.04 per share, representing a 9.36% increase from $2.78 in the same quarter last year.
- Revenue Expectations: The company anticipates quarterly revenue of $11.18 billion, up 11.9% from $9.99 billion a year ago, indicating strong business growth potential.
- Historical Performance: Salesforce has exceeded analyst revenue estimates in seven out of the last ten quarters, although it missed in the most recent third quarter, which may impact market confidence.
- Stock Price Movement: Salesforce shares rose 4.1% to close at $185.42 on Tuesday, reflecting investor optimism ahead of the earnings report.
See More
Salesforce Earnings Outlook and AI Opportunities
- Earnings Outlook: Salesforce projects a revenue of $63 billion by FY30, although this forecast is slightly below market expectations, it still reflects the company's confidence in future growth.
- Profit Performance: The company reported a non-GAAP EPS of $3.81, beating market expectations by $0.76, indicating a continuous improvement in profitability that boosts investor confidence.
- Revenue Status: Salesforce's revenue of $11.2 billion aligns with market expectations, demonstrating its stable market position amidst fierce competition in the SaaS sector.
- AI Opportunities: Salesforce is actively leveraging artificial intelligence technologies, which are expected to further enhance its product profitability and market share, particularly in the rapidly evolving smart applications sector.
See More
Nvidia's Strong Earnings Propel Stock Upward
- Nvidia Earnings Beat: Nvidia reported adjusted earnings of $1.62 per share for the fourth quarter, exceeding analysts' expectations of $1.53, leading to a more than 1% increase in after-hours trading.
- Snowflake Revenue Guidance: Snowflake projected first-quarter product revenue between $1.262 billion and $1.267 billion, slightly above the FactSet consensus of $1.26 billion, but shares fell over 2%.
- Trade Desk Misses Expectations: Trade Desk forecasted first-quarter adjusted EBITDA of approximately $195 million, significantly below the $223 million expected by analysts, resulting in a 16% drop in shares.
- Nutanix and AMD Partnership: Nutanix announced a multi-year partnership with AMD to develop an AI infrastructure platform, with AMD investing $150 million in Nutanix, leading to a 17% surge in its stock price.
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Salesforce's FY2027 Revenue Estimates Fall Short of Expectations
- Revenue Guidance Downgrade: Salesforce's forecast for FY2027 revenue ranges from $45.8 billion to $46.2 billion, falling short of the analyst midpoint estimate of $46.02 billion, indicating potential challenges in future growth that may affect investor confidence.
- Strong Q4 Performance: Despite the revenue guidance downgrade, Salesforce reported Q4 revenue of $11.2 billion, a 12% year-over-year increase, surpassing analysts' expectations of $11.19 billion, demonstrating the company's resilience in the current market environment.
- Earnings Per Share Beat: The company posted earnings per share of $3.81, significantly exceeding the market expectation of $3.05, reflecting effective management in cost control and profitability, which may support future investments.
- Annual Revenue Growth: Salesforce achieved $41.5 billion in revenue for FY2026, a 10% year-over-year increase, with total remaining performance obligations (RPO) reaching $72 billion, up 14% year-over-year, showcasing the company's ongoing growth potential in the cloud software market.
See More
Salesforce Q4 Earnings Beat Expectations with Strong AI Growth
- Earnings Beat: Salesforce reported adjusted EPS of $3.81 for Q4, surpassing Wall Street's expectation of $3.05, indicating strong profitability, while revenue slightly exceeded expectations at $11.2 billion compared to the anticipated $11.17 billion.
- Optimistic Outlook: The company projects Q1 revenue between $11.03 billion and $11.08 billion, exceeding market expectations of $10.99 billion, suggesting a gradual recovery in revenue growth despite a slowdown in overall growth rates.
- Significant AI Growth: Salesforce's Agent Force annual run rate reached $800 million, up 169% year-over-year, with 29,000 deals closed this quarter, reflecting rapid development and increasing market acceptance of its AI offerings.
- Expanded Buyback Plan: Salesforce announced an increase in its share buyback authorization to $50 billion, demonstrating confidence in future growth while providing additional returns to shareholders, which could positively impact the stock price in the short term.
See More
Salesforce Reports Strong Earnings but Guidance Falls Short
- Strong Earnings Report: Salesforce's earnings report revealed an adjusted EPS of $3.81, surpassing the expected $3.04, while revenue reached $11.20 billion, slightly below the $11.18 billion forecast; the 12% year-over-year revenue growth marks the company's fastest rate in two years, indicating robust performance in the customer service software market.
- Cautious Future Guidance: The company projected adjusted EPS of $13.11 to $13.19 and revenue of $45.8 billion to $46.2 billion for fiscal 2027, implying a growth rate of 10% to 11%, yet this falls short of analysts' expectations of $46.06 billion, reflecting market concerns about future growth prospects.
- Confidence Boost from Buyback Plan: Salesforce announced a $50 billion stock buyback plan, aimed at bolstering investor confidence and enhancing shareholder value, despite a 28% decline in stock price in 2026, demonstrating the company's belief in its long-term outlook.
- AI Technology Driving Growth: During the quarter, Salesforce launched an AI-enabled Slackbot assistant and completed its $8 billion acquisition of Informatica, which contributed $399 million in revenue; the company now anticipates reaching $63 billion in revenue by 2030, exceeding market expectations, showcasing its strategic focus on AI advancements.
See More
Salesforce Q4 Earnings Expectations
- Earnings Release Date: Salesforce is set to release its Q4 earnings after the market closes on February 25, with analysts forecasting earnings of $3.04 per share, representing a 9.36% increase from $2.78 in the same quarter last year.
- Revenue Expectations: The company anticipates quarterly revenue of $11.18 billion, up 11.9% from $9.99 billion a year ago, indicating strong business growth potential.
- Historical Performance: Salesforce has exceeded analyst revenue estimates in seven out of the last ten quarters, although it missed in the most recent third quarter, which may impact market confidence.
- Stock Price Movement: Salesforce shares rose 4.1% to close at $185.42 on Tuesday, reflecting investor optimism ahead of the earnings report.
See More
Salesforce Earnings Outlook and AI Opportunities
- Earnings Outlook: Salesforce projects a revenue of $63 billion by FY30, although this forecast is slightly below market expectations, it still reflects the company's confidence in future growth.
- Profit Performance: The company reported a non-GAAP EPS of $3.81, beating market expectations by $0.76, indicating a continuous improvement in profitability that boosts investor confidence.
- Revenue Status: Salesforce's revenue of $11.2 billion aligns with market expectations, demonstrating its stable market position amidst fierce competition in the SaaS sector.
- AI Opportunities: Salesforce is actively leveraging artificial intelligence technologies, which are expected to further enhance its product profitability and market share, particularly in the rapidly evolving smart applications sector.
See More
Nvidia's Strong Earnings Propel Stock Upward
- Nvidia Earnings Beat: Nvidia reported adjusted earnings of $1.62 per share for the fourth quarter, exceeding analysts' expectations of $1.53, leading to a more than 1% increase in after-hours trading.
- Snowflake Revenue Guidance: Snowflake projected first-quarter product revenue between $1.262 billion and $1.267 billion, slightly above the FactSet consensus of $1.26 billion, but shares fell over 2%.
- Trade Desk Misses Expectations: Trade Desk forecasted first-quarter adjusted EBITDA of approximately $195 million, significantly below the $223 million expected by analysts, resulting in a 16% drop in shares.
- Nutanix and AMD Partnership: Nutanix announced a multi-year partnership with AMD to develop an AI infrastructure platform, with AMD investing $150 million in Nutanix, leading to a 17% surge in its stock price.
See More
Salesforce's FY2027 Revenue Estimates Fall Short of Expectations
- Revenue Guidance Downgrade: Salesforce's forecast for FY2027 revenue ranges from $45.8 billion to $46.2 billion, falling short of the analyst midpoint estimate of $46.02 billion, indicating potential challenges in future growth that may affect investor confidence.
- Strong Q4 Performance: Despite the revenue guidance downgrade, Salesforce reported Q4 revenue of $11.2 billion, a 12% year-over-year increase, surpassing analysts' expectations of $11.19 billion, demonstrating the company's resilience in the current market environment.
- Earnings Per Share Beat: The company posted earnings per share of $3.81, significantly exceeding the market expectation of $3.05, reflecting effective management in cost control and profitability, which may support future investments.
- Annual Revenue Growth: Salesforce achieved $41.5 billion in revenue for FY2026, a 10% year-over-year increase, with total remaining performance obligations (RPO) reaching $72 billion, up 14% year-over-year, showcasing the company's ongoing growth potential in the cloud software market.
See More
Salesforce Q4 Earnings Beat Expectations with Strong AI Growth
- Earnings Beat: Salesforce reported adjusted EPS of $3.81 for Q4, surpassing Wall Street's expectation of $3.05, indicating strong profitability, while revenue slightly exceeded expectations at $11.2 billion compared to the anticipated $11.17 billion.
- Optimistic Outlook: The company projects Q1 revenue between $11.03 billion and $11.08 billion, exceeding market expectations of $10.99 billion, suggesting a gradual recovery in revenue growth despite a slowdown in overall growth rates.
- Significant AI Growth: Salesforce's Agent Force annual run rate reached $800 million, up 169% year-over-year, with 29,000 deals closed this quarter, reflecting rapid development and increasing market acceptance of its AI offerings.
- Expanded Buyback Plan: Salesforce announced an increase in its share buyback authorization to $50 billion, demonstrating confidence in future growth while providing additional returns to shareholders, which could positively impact the stock price in the short term.
See More
Salesforce Reports Strong Earnings but Guidance Falls Short
- Strong Earnings Report: Salesforce's earnings report revealed an adjusted EPS of $3.81, surpassing the expected $3.04, while revenue reached $11.20 billion, slightly below the $11.18 billion forecast; the 12% year-over-year revenue growth marks the company's fastest rate in two years, indicating robust performance in the customer service software market.
- Cautious Future Guidance: The company projected adjusted EPS of $13.11 to $13.19 and revenue of $45.8 billion to $46.2 billion for fiscal 2027, implying a growth rate of 10% to 11%, yet this falls short of analysts' expectations of $46.06 billion, reflecting market concerns about future growth prospects.
- Confidence Boost from Buyback Plan: Salesforce announced a $50 billion stock buyback plan, aimed at bolstering investor confidence and enhancing shareholder value, despite a 28% decline in stock price in 2026, demonstrating the company's belief in its long-term outlook.
- AI Technology Driving Growth: During the quarter, Salesforce launched an AI-enabled Slackbot assistant and completed its $8 billion acquisition of Informatica, which contributed $399 million in revenue; the company now anticipates reaching $63 billion in revenue by 2030, exceeding market expectations, showcasing its strategic focus on AI advancements.
See More
