Salesforce Inc., led by CEO Marc Benioff, reported strong financial results during its fiscal fourth quarter, despite seeing a 4% drop in shares during extended trading on Wednesday. For the fiscal year 2027, the company’s revenue expectations fell short of Wall Street estimates, influencing its stock performance.
In its fourth quarter, which concluded on January 31, Salesforce achieved earnings per share of $3.81, surpassing the expected $3.04. Revenue for the quarter reached $11.20 billion, slightly exceeding the forecast of $11.18 billion. This marks an impressive 12% year-over-year revenue growth—the fastest the company has seen in two years.
Net income for the quarter was reported at $1.94 billion, equating to $2.07 per share, up from $1.71 billion, or $1.75 per share, a year earlier. The adjusted earnings per share, which excludes stock-based compensation, amortization of intangible assets, and restructuring costs, indicates a robust operational performance.
Salesforce revealed plans to allocate $50 billion for share buybacks, aiming to boost shareholder value in the face of heightened market dynamics. However, amid these positive results, the company’s stock has tumbled about 28% in 2026, compared to a 1% rise in the S&P 500 index.
Current remaining performance obligations, which encompass contracted but unrecognized revenue and unbilled amounts, stood at $35.1 billion—surpassing the consensus estimate of $34.53 billion. Looking ahead, the guidance for the fiscal first quarter includes adjusted earnings per share projected between $3.11 and $3.13, as well as revenue expectations of $11.03 billion to $11.08 billion, both above analysts’ predictions.
For the forthcoming 2027 fiscal year, Salesforce anticipates adjusted earnings per share between $13.11 and $13.19, with revenue expected to fall between $45.8 billion and $46.2 billion, reflecting a growth rate of 10% to 11%. Analysts from LSEG had anticipated $13.12 per share on revenue of approximately $46.06 billion.
These developments suggest a complex landscape for Salesforce as it navigates market challenges while maintaining a focus on growth and shareholder returns.