Salesforce beat earnings and revenue estimates last quarter, but shares fell 5.4% due to weaker-than-expected guidance.
Earnings per share were US$3.81 in the January quarter, up from $2.78 year-over-year and passing LSEG estimates of $3.04. Revenue rose 12% to $11.20 billion, above estimates of $11.18.
“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,” said chair and CEO Marc Benioff.
“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.”
Its full year guidance for fiscal 2027 includes revenue of $45.8-46.2 billion and earnings per share of $13.11-13.19. LSEG consensus estimates were for $46.06 in revenue and $13.12 in earnings per share.
Salesforce has allocated $50 billion for share buybacks, it said.
Subscription and support revenue last quarter was $10.68 billion, up from $9.45 billion. Professional services and other revenue dipped from $542 million to $526 million.
Operating expenses rose from $5.96 billion to $6.82 billion, largely due to an increase in sales and marketing costs.
Its current remaining performance obligation increased 16% to $35.1 billion.
Salesforce (NYSE: CRM) shares closed 3.4% higher at $191.75, but had shed 5.4% after-hours trading at the time of writing following the earnings release. Its market capitalisation is $179.67 billion.
