Salesforce Shares Dips on Mixed Q4 Performance, Soft FY2026 Outlook

GuruFocus.com
27 Feb

Feb 27 - Salesforce reported mixed fourth-quarter fiscal 2025 earnings on Wednesday, according to a press release. For the quarter ended Jan. 31, the San Francisco-based customer relationship management platform provider posted adjusted earnings per share of US$2.78, exceeding the consensus estimate of US$2.61. Quarterly revenue came in at US$10 billion, slightly below the market forecast of US$10.04 billion.

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The company said full-year fiscal 2026 revenue is projected to be in the range of US$40.5 billion to US$40.9 billion, with a midpoint of US$40.7 billion, short of the analyst consensus of US$41.5 billion. It also provided guidance for the current quarter, expecting revenue of US$9.71 billion to US$9.76 billion and earnings per share of US$2.53 to US$2.55.

Salesforce Chief Executive Officer Marc Benioff noted strong performance and highlighted record cash flow as well as more than US$60 billion in remaining performance obligations. The firm reported annual recurring revenue from Data Cloud and artificial intelligence at US$900 million, up 120 percent year over year.

Shares of Salesforce fell about 3% in after-hours trading, as investors weighed the slower revenue outlook for fiscal 2026 against robust earnings results and AI-driven momentum.

This article first appeared on GuruFocus.

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