Salesforce (CRM -2%) experienced a slight decline today despite posting a significant EPS beat in Q4 (January) after a rare miss in Q3 (October). Analysts had anticipated CRM's first-ever $10 billion revenue quarter for Q4, but revenue grew 7.6% year-over-year to $9.99 billion. CRM rounded up and referred to this as its first $10 billion quarter, although the top line was slightly below expectations.

• Guidance issues: CRM projected EPS and revenue shortfalls for both Q1 (April) and the full fiscal year (FY26). CRM expects Q1 revenues of $9.71-9.76 billion, below analyst forecasts. The strengthened US dollar since the last earnings call is expected to create an incremental $200 million headwind to FY26 revenue. Additionally, CRM's professional services business is anticipated to remain a growth obstacle this year.

• Current Remaining Performance Obligation (cRPO) increased by 11% in constant currency to $30.2 billion in Q4, surpassing the prior guidance of 9%. This was driven by robust performances in Data Cloud, AI, and Slack, as well as strong early renewals. CRM forecasts a 10% constant currency growth in cRPO for Q1.

• Geographic performance: In Q4, Americas revenue grew 8% in constant currency, EMEA grew 6-7%, and APAC grew 14%. CRM reported strong new business growth in Latin America, Japan, and Canada, though some EMEA regions remain constrained. The US market showed signs of stabilization. Industry-wise, Health and Life Sciences, Communications, and Media performed well, while Tech, Manufacturing, Automotive, and Energy showed more measured growth.

• Agentforce launch: CRM highlighted the successful launch of Agentforce, integrating Salesforce features with AI agents in a digital workforce. Within 90 days of its launch, CRM secured 3,000 paying Agentforce customers, with deployment across various industries.

Overall, Q4 was solid, marking CRM's first-ever $10 billion quarter, a significant milestone. Highlights included strong EPS upside and impressive cRPO growth. The US market's stabilization was also positive. However, guidance for Q1 and FY26 was disappointing, partly due to FX headwinds. Management expressed enthusiasm about Agentforce, describing it as Salesforce's next evolution with promising early success.