Salesforce Inc (NYSE:CRM, ETR:FOO) shares moved lower after the customer relationship management (CRM) software provider reported a revenue miss for the fourth quarter and issued conservative guidance.
For Q4, revenue of $9.99 billion marked an 8% year-over-year increase by missed estimates of $10.04 due to a $75 million FX headwind.
Earnings per share of $2.78, however, beat estimates of $2.61.
For fiscal 2026, Salesforce projected revenue in the range of $40.5 billion to $40.9 billion missing estimates of $41.4 billion, with Salesforce anticipating a $200 million FX headwind while gaining traction with Agentforce, its AI-powered agents.
“The Agentforce adoption cycle is still in the early innings so Salesforce is baking in a modest fiscal 2026 revenue contribution with more meaningful contribution in fiscal 2027 while professional services is expected to be a growth headwind as Salesforce relies heavily on its partner ecosystem,” analysts at Wedbush wrote in a note to clients.
They highlighted the strong performance of data cloud, AI and Slack during the fourth quarter, with Salesforce closing 5,000 Agentforce deals.
“3,000 of which were paying customers signaling more customers investing further into Salesforce’s portfolio of digital labor tools with apps, data, and agents to drive future workflows over the long-term,” they wrote.
“The monetization of Agentforce is still in the early stages of playing out and we believe that the company is taking a prudent approach to scaling the Agentforce that will pay off over the long-term with the AI Revolution now entering the software phase.”
Wedbush repeated their ‘Outperform’ rating and $425 price target on Salesforce, which traded down 3.9% at about $295 on Thursday afternoon.