Salesforce posted non-GAAP EPS of $3.81, well above forecasts of $3.05, on $11.2 billion in Q4 revenue, up 12% year over year and slightly ahead of expectations. Shares nonetheless slipped about 1-2% in after-hours trading as investors weighed guidance and long-term growth signals.
About Salesforce
Salesforce, Inc. (NYSE: CRM) is a leading cloud-based customer relationship management (CRM) and enterprise applications provider, headquartered in San Francisco and founded in 1999. The company offers a broad platform spanning sales, service, marketing, analytics, integration, data, and AI-powered “Agentforce” solutions that help enterprises become “agentic” by combining humans, agents, apps, and data on one platform.
As of late February 2026, Salesforce has a market capitalization of roughly $176-180 billion, with a price-to-earnings ratio near 25 and a dividend yield just under 1%. The company employs tens of thousands of people globally (over 70,000 in recent filings) and continues to invest heavily in AI, data integration, and industry clouds to drive durable, high-margin growth.
Top Financial Highlights
- Q4 total revenue reached USD 11.2 billion, reflecting 12% year over year growth and performing broadly in line with consensus expectations of approximately USD 11.18 billion.
- Subscription and support revenue totaled USD 10.7 billion, increasing 13% year over year or 11% in constant currency terms, including USD 388 million contributed from the Informatica acquisition.
- Professional services and other revenue amounted to USD 526 million in Q4, slightly below USD 542 million recorded in the prior year quarter.
- Q4 GAAP net income increased to USD 1.94 billion, compared to USD 1.71 billion a year earlier.
- Q4 GAAP diluted earnings per share rose to USD 2.07, compared to USD 1.75 in the prior year period.
- Q4 non GAAP diluted earnings per share reached USD 3.81, up from USD 2.78 in the previous year and exceeding the USD 3.05 consensus estimate.
- GAAP operating margin for FY26 stood at 20.1%, while non GAAP operating margin reached 34.1%, reflecting operating leverage and disciplined cost management.
- FY26 operating cash flow totaled USD 15.0 billion, increasing 15% year over year, while free cash flow reached USD 14.4 billion, up 16%.
- Cash and marketable securities totaled USD 9.6 billion as of January 31, 2026, comprising USD 7.3 billion in cash and equivalents and USD 2.2 billion in marketable securities.
- Remaining performance obligation reached USD 72.4 billion, up 14% year over year, with current RPO at USD 35.1 billion, increasing 16% or 13% in constant currency terms.
- Q4 subscription and support revenue from Agentforce Sales totaled USD 2.33 billion.
- Q4 subscription and support revenue from Agentforce Service reached USD 2.53 billion.
- Q4 revenue from Agentforce 360 Platform, Slack and other solutions totaled USD 2.66 billion, including Informatica related contribution.
- Agentforce and Data 360 annual recurring revenue exceeded USD 2.9 billion, growing over 200% year over year, including USD 1.1 billion from Informatica Cloud and USD 800 million from Agentforce, which increased 169% year over year.
- Total capital returned to shareholders in FY26 amounted to USD 14.3 billion, including USD 12.7 billion in share repurchases and USD 1.6 billion in dividends, with the quarterly dividend increased to USD 0.44 per share.
- The Board approved a new USD 50 billion share repurchase authorization, replacing prior unused programs.
- FY27 revenue guidance is projected between USD 45.8 billion and USD 46.2 billion, implying 10% to 11% year over year growth, including approximately three percentage points contribution from Informatica.
Beat or Miss?
| Metric | Reported | Estimated / Consensus | Difference / Analysis |
| Revenue (Q4) | $11.2 billion | ≈$11.18 billion | Slight beat; growth of 12% Y/Y with Informatica contribution of $399 million. |
| Non-GAAP Diluted EPS (Q4) | $3.81 | $3.05 | Clear beat; ~25% upside vs. expectations, driven by margin expansion and investment gains. |
| GAAP Diluted EPS (Q4) | $2.07 | N/A | Strong Y/Y growth from $1.75, supported by higher operating income and investment gains. |
| Total RPO | $72.4 billion | N/A | Up 14% Y/Y; signals solid multi-year demand and backlog. |
| Current RPO | $35.1 billion | N/A | Up 16% Y/Y (13% CC), aided by Informatica and expansion deals. |
| FY27 Revenue Guidance | $45.8–$46.2 billion | Street ~low-to-mid 10% growth (implied) | In-line growth range; focus on re-acceleration in H2 FY27. |
| FY27 GAAP Operating Margin Guide | 20.9% | N/A | Suggests continued profitability with modest leverage. |
| FY27 Non-GAAP OCF Growth | 9-10% | N/A | Healthy but moderating from FY26’s 15% OCF growth. |
What Leadership Is Saying?
“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. We’ve rebuilt Salesforce to become the operating system for the Agentic Enterprise, bringing humans and agents together on one trusted platform. And the more intelligence moves to where work happens, the more valuable Salesforce becomes.” By Marc Benioff, Chair and CEO.
“Salesforce delivered a record Q4 as our customers’ shift to the Agentic Enterprise surges, fueling NNAOV acceleration in H2 FY26. Our performance makes us even more confident in our path to reaccelerate organic revenue growth in H2 FY27. Reflecting our strong trajectory, we’ve increased our authorization to $50 billion for share repurchases and increased our quarterly dividend, reinforcing our commitment to delivering significant shareholder value.” By Robin Washington, President and Chief Financial and Operating Officer.
Historical Performance
YoY Comparison – Salesforce Q4 FY26 vs. Q4 FY25
| Category | Q4 FY26 | Q4 FY25 | Change (%) |
| Revenue | $11.201 billion | $9.993 billion | ≈ +12.1% |
| Net Income | $1.943 billion | $1.708 billion | ≈ +13.8% |
| Operating Expenses | $6.824 billion | $5.956 billion | ≈ +14.6% |
| Income from Operations | $1.869 billion | $1.820 billion | ≈ +2.7% |
| Operating Cash Flow (FY) | $15.0 billion (FY26) | $13.1 billion (FY25) | ≈ +15.0% |
Competitors Comparison
| Category | Salesforce Q4/FY26 | Microsoft Intelligent Cloud FY Q2 2026* | Oracle Cloud Services FY Q2 2026* | Change Commentary (%) |
| Revenue (Period) | $11.2B Q4 | ≈$28-29B segment | ≈$10-11B cloud-related | All mid-teens growth; Salesforce ~12% Y/Y. |
| Net Income (Period) | $1.94B Q4 | Double-digit growth Y/Y (undisclosed here) | Mid-teens EPS growth† | All expanding profitability; Salesforce GAAP net income +14% Y/Y. |
| Operating Expenses | $6.82B Q4 | Rising on AI & cloud investment | Rising with cloud R&D & sales | All investing heavily in AI and cloud go-to-market. |
Q1 FY27 Guidance
- Full year FY27 revenue is expected in the range of USD 45.8 billion to USD 46.2 billion, representing 10% to 11% year over year growth in both reported and constant currency terms, including approximately three percentage points contribution from Informatica.
- Organic revenue growth is projected to re accelerate in the second half of FY27, supported by core platform expansion and enterprise demand trends.
- Full year FY27 subscription and support revenue growth is expected at slightly under 12% year over year, or approximately 11% in constant currency, including around three percentage points from Informatica.
- GAAP operating margin for FY27 is projected at 20.9%, while non GAAP operating margin is expected to reach 34.3%.
- Operating cash flow growth for FY27 is anticipated at approximately 9% to 10% year over year.
- The company increased its FY30 revenue target to USD 63 billion, inclusive of the Informatica contribution.
How the Market Reacted?
Despite delivering an earnings and revenue beat, Salesforce’s stock saw modest pressure in immediate trading after the report. Shares dipped about 1.2% in after-hours trading to around $183, down from a prior close near $185-186. Investors appeared to focus on the balance between solid current execution, aggressive AI investment, and guidance that implies steady rather than explosive growth in FY27. Overall sentiment around the quarter itself is bullish on profitability and AI-driven ARR momentum, but the market reaction reflects a more cautious view on the pace of long-term re-acceleration.
