Salesforce wrapped FY 2026 with a record $41.5 billion in revenue, but its FY 2027 outlook fell short of Wall Street expectations, sparking AI‑related worries among investors. The cloud‑software leader projected $45.8‑$46.2 billion for the coming year, a pace that lags the consensus growth forecast. You’ll want to watch how its Agentic AI strategy could reshape that trajectory.
FY 2026 Performance Highlights
The fourth quarter delivered $11.2 billion in revenue, a solid 12% year‑over‑year rise. Subscription and support climbed to $10.7 billion, up 13% YoY, while remaining performance obligations (RPO) surged to $72.4 billion, a 14% jump. Operating cash flow hit $15.0 billion, a 15% increase, and GAAP operating margin settled at 20.1%.
FY 2027 Revenue Guidance Shortfall
Salesforce’s guidance of $45.8‑$46.2 billion translates to 10%‑11% growth, trailing the market’s median forecast of roughly 11%‑12% growth. The midpoint sits just below the consensus estimate, prompting a modest dip in the stock as investors recalibrate expectations.
AI Investment Concerns
CEO Marc Benioff emphasized that Agentic AI is a “tailwind,” yet the guidance reflects a cautious stance on AI‑driven expansion. Heavy spending on generative AI features has investors watching the return on that spend closely. If AI adoption stalls, the company’s growth engine could sputter.
Shareholder Returns and Capital Allocation
Despite the guidance gap, Salesforce raised its quarterly dividend to $0.44 per share, a 5.8% increase YoY. The firm also authorized a $50 billion share‑repurchase program, having already returned $14.3 billion to shareholders this quarter, including $12.7 billion in buybacks and $1.6 billion in dividends.
Analyst Reactions and Market Impact
Analysts flagged the guidance shortfall as a pressure point for the stock. The core concern isn’t just the top line—it’s the pace at which AI‑infused workflows will scale. A slower rollout could force investors to reassess growth expectations.
Implications for Investors
If you hold CRM shares, the modest slowdown signals a need to monitor AI execution closely. The strong cash position and continued shareholder returns provide a cushion, but the real story hinges on whether Agentic AI can accelerate growth back above consensus. Keep an eye on the rollout, because the next few quarters will reveal if the AI bets pay off.
