CRM Stock: Salesforce’s Record FY26 Can’t Offset Cautious FY27 Outlook

Salesforce’s Earnings Beat Fails to Lift CRM Stock as Guidance, AI Pricing Jitters Weigh

Salesforce shares slipped after the company posted record fourth-quarter and full‑year fiscal 2026 results on Wednesday, February 25, 2026, topping earnings and revenue expectations but guiding fiscal 2027 sales below some Wall Street models. Management also unveiled a fresh $50 billion repurchase authorization and raised the quarterly dividend, while doubling down on its agentic AI strategy built around Agentforce and Data 360. (investor.salesforce.com)

Market snapshot

• Price check: As of 7:15 p.m. ET on Wednesday, February 25, 2026 (00:15 UTC on February 26), CRM traded at $191.75, down about 3.8% from the prior close. Market capitalization was roughly $248 billion. After-hours action earlier showed declines of 4–5% as investors digested guidance. (barrons.com)
• Year to date: CRM is down roughly 27–28% in 2026 amid a broader software rerating tied to AI-driven competition and shifting pricing models. (ft.com)

The numbers

Salesforce closed fiscal 2026 (ended January 31, 2026) with double‑digit top‑line growth and stronger cash generation:

• Q4 revenue: $11.2 billion, up 12% year over year; subscription and support revenue reached $10.7 billion. (investor.salesforce.com)
• FY26 revenue: $41.5 billion, up 10% year over year. GAAP operating margin was 20.1%; non‑GAAP operating margin 34.1%. Operating cash flow hit $15.0 billion; free cash flow $14.4 billion. (investor.salesforce.com)
• Current remaining performance obligation (CRPO): $35.1 billion, up 16% year over year; total RPO $72.4 billion, up 14%. (investor.salesforce.com)

On capital returns, Salesforce authorized a new $50 billion buyback program (replacing prior unused authorizations) and lifted its quarterly cash dividend to $0.44 per share, payable April 23, 2026 to shareholders of record on April 9, 2026. Management said it returned $14.3 billion to shareholders in FY26 via repurchases and dividends. (investor.salesforce.com)

Why the stock fell

The beat wasn’t enough because the outlook underwhelmed. For FY27, Salesforce guided revenue to $45.8–$46.2 billion (up 10–11%), a touch light versus some consensus models, and projected non‑GAAP operating margin of 34.3%. Investors focused on whether AI‑era pricing—potentially shifting from per‑seat to more usage- or outcome‑based models—could pressure near‑term growth. (investor.salesforce.com)

AI, Agentforce and the “agentic enterprise”

Salesforce continued to position itself as the operating system for “agentic” AI in the enterprise:

• Agentforce annual recurring revenue (ARR): $800 million, up 169% year over year. (investor.salesforce.com)
• Combined Agentforce + Data 360 ARR: more than $2.9 billion, including contributions from Informatica’s cloud portfolio. (investor.salesforce.com)
• Adoption metrics: 29,000 Agentforce deals closed to date (up 50% quarter over quarter); 2.4 billion “agentic work units” delivered across Agentforce and Slack; more than 19 trillion tokens processed. (investor.salesforce.com)

Despite this momentum, the market wants clearer evidence for when AI agents translate into durable, large‑scale revenue acceleration—a tension that contributed to the post‑earnings pullback. (investors.com)

Strategy check: Data foundation via Informatica

Salesforce closed its roughly $8 billion acquisition of Informatica on November 18, 2025, folding the data‑management leader into its platform to bolster governance, metadata, and master data capabilities that underpin safe, high‑quality AI. Informatica’s cloud ARR is now included in Salesforce’s AI/Data 360 figures and in FY27 guidance. (salesforce.com)

The company initially signed a definitive agreement to acquire Informatica on May 27, 2025, highlighting the tie‑up as a way to enrich Salesforce’s data layer for AI agents; the transaction value and cash consideration were later reiterated by independent outlets. (salesforce.com)

Guidance and long‑term targets

• FY27: Revenue $45.8–$46.2 billion; subscription & support growth just under 12%; GAAP operating margin 20.9%; non‑GAAP operating margin 34.3%; operating cash flow growth 9–10%. Management expects organic revenue growth to reaccelerate in the second half. (investor.salesforce.com)
• FY30: Long‑term target raised to $63 billion in revenue, reflecting confidence in agentic AI demand. (barrons.com)

Street and sector reaction

Financial press characterized the quarter as a clean beat overshadowed by a cautious revenue outlook, with shares dropping 4–5% after hours on Wednesday. Coverage also spotlighted Salesforce’s push to redefine itself around autonomous agents and the debate over SaaS pricing models in the AI era. (barrons.com)

What to watch next

• Execution on AI monetization: Watch CRPO, AI/Agentforce deal count, and any movement toward usage‑based pricing that could alter revenue recognition. (ft.com)
• Informatica integration: Look for Data 360 metrics and cross‑sell into MuleSoft/Tableau as early synergy proof points. (salesforce.com)
• Capital returns vs. investment: The $50 billion authorization and higher dividend give downside support, but investors will parse whether buybacks crowd out incremental AI/data investment. (investor.salesforce.com)
• Next catalyst: Management guided Q1 FY27 revenue to $11.03–$11.08 billion; commentary on AI agent adoption and H2 FY27 reacceleration will be critical. (investor.salesforce.com)

Bottom line

CRM’s selloff reflects a familiar AI‑era trade‑off: strong near‑term execution and cash returns versus lingering questions about the revenue cadence of next‑gen AI agents and evolving monetization. With data plumbing reinforced by Informatica and a bigger cash‑return program, Salesforce has levers to support shareholder value while it proves that agentic AI can be a durable growth engine. The next few quarters—especially the back half of FY27—will show whether that thesis gains traction. (investor.salesforce.com)