Salesforce Inc (NYSE:CRM, XETRA:FOO) shares fell more than 4% afterhours on Wednesday as the cloud software company reported better-than-expected quarterly results but issued a fiscal 2027 outlook that came in slightly below Wall Street expectations on revenue.
For the fourth quarter, Salesforce reported adjusted earnings per share of $3.81, topping the $3.04 expected by analysts.
Revenue rose to $11.20 billion from a year earlier, narrowly beating expectations of $11.18 billion. The company said total revenue increased 12% year-over-year, while subscription and support revenue reached $10.7 billion, up 13%.
Salesforce also highlighted backlog strength, with remaining performance obligations (RPO) totaling $72.4 billion, up 14% year-over-year, and current RPO of $35.1 billion, up 16%.
For the full fiscal year ended January 31, 2026, Salesforce posted revenue of $41.5 billion, up 10% from the prior year. GAAP operating margin came in at 20.1%, while non-GAAP operating margin was 34.1%. Operating cash flow rose 15% to $15 billion, and free cash flow increased 16% to $14.4 billion.
“We delivered a phenomenal quarter to close out a record fiscal 2026, delivering $41.5 billion in revenue, up 10% year-over-year and we passed an incredible milestone, with $72 billion in total RPO, up 14% year-over-year,” Salesforce CEO Marc Benioff said.
Looking ahead, Salesforce guided for fiscal first quarter adjusted earnings of $3.11 to $3.13 per share on revenue of $11.03 billion to $11.08 billion. Analysts had been expecting $3 per share on $10.99 billion in revenue.
For fiscal 2027, the company projected adjusted earnings of $13.11 to $13.19 per share on revenue of $45.8 billion to $46.2 billion, implying growth of 10% to 11%. While the earnings outlook was largely in line with expectations of $13.12, the revenue range fell modestly short of the consensus of $46.06 billion.
Salesforce also said it expects organic revenue growth to reaccelerate in the second half of fiscal 2027 and forecast subscription and support revenue growth of slightly under 12% year-over-year.
Further, the company announced a new $50 billion share repurchase authorization, replacing previously unused programs, and increased its quarterly dividend by 5.8% to $0.44 per share.
Looking further out, Salesforce raised its fiscal 2030 revenue target to $63 billion, including contributions from Informatica, as it continues to focus on AI-driven enterprise demand. This is up from about $60 billion guided in October.