Salesforce (CRM) Stock Falls Despite Strong Quarter – CEO Benioff Says It’s a Buying Opportunity

TLDR

• Salesforce Q4 revenue grew 12% year over year to $11.20 billion, beating estimates
• Full-year fiscal 2027 revenue guidance of $45.8B–$46.2B came in slightly below Wall Street expectations
• Salesforce authorized a $50 billion share buyback, citing the stock’s low price
• Agentforce annualized revenue exceeded $800 million, up from $540 million the prior quarter
• Salesforce raised its fiscal 2030 revenue target to $63 billion, up from $60 billion

Salesforce posted strong Q4 numbers on Wednesday, but the stock still dropped around 5% in after-hours trading after its full-year revenue guidance fell just short of what Wall Street was expecting.

For the quarter ending January 31, revenue came in at $11.20 billion, up 12% year over year. That’s the fastest growth rate Salesforce has seen in two years.

Adjusted earnings per share hit $3.81, well ahead of the $3.04 consensus estimate from LSEG. Net income rose to $1.94 billion from $1.71 billion a year earlier.

Salesforce, Inc., CRM

Current remaining performance obligation — contracted revenue expected to be recognized over the next 12 months — came in at $35.1 billion, above the $34.53 billion consensus.

For fiscal 2027, Salesforce guided for revenue of $45.8 billion to $46.2 billion. Analysts had been looking for $46.06 billion. That implies growth of around 10% to 11%, roughly in line with last year’s pace.

CEO Marc Benioff wasn’t holding back on Wednesday. He called the recent stock selloff a buying opportunity and authorized a new $50 billion share buyback program.

The buyback replaces all previously unused authorizations. As of Wednesday’s close, CRM stock had fallen roughly 28% in 2026, touching a three-year low earlier in the month.

Agentforce Picks Up Speed

Agentforce, Salesforce’s AI automation product, posted annualized revenue exceeding $800 million during the quarter, up from $540 million the quarter before. The company closed 29,000 deals in the period, a 50% jump from Q3.

Benioff named SharkNinja and Wyndham Hotels & Resorts as customers adding agents at pace. Morgan Stanley analysts, who carry the equivalent of a buy rating, noted that partner conversations “continue to indicate we are in the early innings.”

Informatica and Anthropic Provide a Lift

Salesforce completed its $8 billion acquisition of Informatica during the quarter. The data management company contributed $399 million in revenue, and helped push Salesforce’s fiscal 2030 revenue target up to $63 billion from over $60 billion. Analysts had only expected $59.07 billion.

The company also recorded an $811 million gain on strategic investments, largely from its stake in Anthropic. That’s up from $96 million in the year-ago period.

Five ServiceNow customers switched to Salesforce’s IT service management product during the quarter, according to Benioff.

For Q1 fiscal 2028, Salesforce guided for revenue of $11.03 billion to $11.08 billion and adjusted EPS of $3.11 to $3.13, both ahead of analyst estimates.

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