Salesforce FY2026 Q4 Earnings Summary
Agentforce Gains Traction, RPO Stays Strong—But Core Clouds Still Drag as Investors Wait for 2H FY27 Re-Acceleration
Salesforce closed FY2026 with steady execution: Q4 revenue rose 12% y/y to $11.2B (in-line), while forward demand indicators remained solid with cRPO up 16% y/y to $35.1B and total RPO up 14% y/y to $72.4B. Billings also stood out at $20.5B (+19% y/y), reinforcing that large customers are still committing — especially around data + agentic workflows.
The message from management was clear: Salesforce is trying to evolve from “apps” to an agentic operating system — where Agentforce + Data 360 become the growth engine layered on top of its installed base. The tension: near-term growth is still being held back by weaker pockets (Marketing, Commerce, Tableau), and FY27 revenue guidance landed slightly light vs consensus — keeping the market in “show-me” mode.
Key Financial Highlights
Revenue: $11.20B (+12% y/y; ~in-line)
Subscription & Support: $10.68B (slightly above)
Non-GAAP Operating Margin: 34.1% (in-line)
cRPO: $35.1B (+16% y/y)
Total RPO: $72.4B (+14% y/y; above expectations)
EPS (Q4): $3.81 (well above consensus)
Free Cash Flow: $5.32B (above expectations)
Demand Signals
This quarter’s “better-than-it-looks” story is the demand stack. Salesforce posted above-consensus RPO and billings, suggesting customers are still signing real commitments despite broader SaaS skepticism. Management pointed to net new AOV improving and reiterated confidence in returning to double-digit organic growth in the back half of FY27.
That said, the market didn’t love the setup because FY27 revenue guidance ($45.8–$46.2B) implied a more gradual ramp than many hoped for — and investors remain sensitive to any narrative that “AI is disruptive to legacy SaaS pricing power.”
Agentforce Momentum
Agentforce continues to build, but it’s still early relative to Salesforce scale:
Agentforce ARR: ~$800M, up 169% y/y
Agentforce deals: 29,000 in 15 months, up 50% q/q
Agentforce + Data 360 ARR (incl. Informatica Cloud ARR): >$2.9B, up 200%+ y/y
Bookings mix: >60% from existing customers expanding commitments
Usage metrics: Nearly 20T tokens consumed; 2.4B “Agentic Work Units” (Salesforce’s attempt to translate “tokens” into “work delivered”)
The biggest takeaway: Salesforce is leaning hard into the idea that the platform becomes more valuable as more “work” moves into agentic workflows, and it wants to own the control plane: data + app context + workflow + guardrails + distribution via Slack.
What’s Still Not Working
Even with Agentforce progress, management acknowledged continued softness in:
Marketing Cloud / Commerce Cloud
Tableau (including timing headwinds in on-prem pieces)
This matters because investors want proof that Agentforce doesn’t merely offset weak areas — but eventually re-accelerates the entire revenue base. Right now, the “core drag” is still too visible to ignore.
Capital Return: Loud and Clear
Salesforce leaned into shareholder returns as a confidence signal:
Dividend raised to $0.44
New $50B repurchase authorization (a major number relative to market cap)
Management essentially framed the stock as “mispriced” and the buyback as the most compelling investment available.
Outlook
Q1 Revenue: $11.03B–$11.08B (slightly above)
FY27 Revenue: $45.8B–$46.2B (slightly below consensus at midpoint)
FY27 Non-GAAP Op Margin: 34.3% (modest expansion; reinvesting to support Agentforce adoption)
Management reiterated the longer-range framework and raised the FY2030 revenue target to $63B, citing a “fast start” with Informatica and growing agentic demand.
Here’s Our Take
Salesforce’s quarter was solid, but not the kind of “blowout” print that instantly changes the narrative. The encouraging part is what’s happening under the hood: customer commitments stayed strong (RPO and cRPO grew double-digits) and billings were better than expected — signals that large companies are still signing up for Salesforce’s platform, not walking away from it. At the same time, Salesforce is clearly in a transition: it’s trying to turn AI into a real product engine (Agentforce + Data 360) while parts of the older portfolio (Marketing, Commerce, Tableau) remain under pressure.
Bottom line: this is a progress quarter. The stock likely stays stuck in “prove it” mode until the company shows that Agentforce momentum can scale meaningfully and that the weaker product lines stabilize. For long-term investors, the setup is interesting — strong cash flow, growing commitments, and aggressive buybacks — but the next leg higher probably needs cleaner evidence that growth re-accelerates as management expects in 2H FY27.
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