Salesforce stock has been a major casualty of the software sell-off. Amid fears that AI will hurt its business model, its share price has fallen around 30% in 20261. Salesforce is rolling out its own AI solutions, however, and starting to see real momentum here. Recent Q4 earnings2 for fiscal 2026, for example, showed 169% year-over-year growth in annual recurring revenue (ARR) for its Agentforce agentic AI solutions.
AI Momentum Building
Salesforce’s Q4 earnings were generally very solid. For the quarter, revenue came in at $11.2 billion, up 10% at constant currency, or approximately 8% excluding the Informatica acquisition contribution. Non-GAAP Diluted net income per share was $3.81 versus $2.78 a year earlier. This was well ahead of the consensus forecast of $3.043.
On the AI and data front, Agentforce and Data 360 annual recurring revenue exceeded $2.9 billion, up over 200% year over year, however this figure included $1.1 billion from Informatica Cloud. Zooming in on Agentforce ARR, it was $800 million, up 169% year over year and roughly 60% higher than the figure for the previous quarter.
In the Q4 earnings release, Salesforce said that it has now closed over 29,000 Agentforce deals since its launch 15 months ago, up 50% on the previous quarter. It added that Agentforce accounts in production increased nearly 50% quarter on quarter and that 60% of Agentforce and Data 360 Q4 bookings came from existing customer expansion.
To measure tasks completed by its AI agents, the company has introduced a metric known as Agentic Work Units (AWUs). In Q4, this came in at 2.4 billion, up 57% quarter over quarter.
On the back of these solid results, the company announced a $50 billion share repurchase program authorization, to capitalize on the stock price weakness. It also increased its quarterly dividend to $0.44 per share, up 5.8% year over year.
Guidance for Q1 and FY2027
In terms of guidance, Salesforce said that for Q1 FY2027, it is expecting $3.11 to $3.13 in adjusted earnings per share on $11.03 billion to $11.08 billion in revenue. Analysts were looking for $3.00 per share and $10.99 billion in revenue.
For the 2027 fiscal year, it is targeting $13.11 to $13.19 in adjusted earnings per share on $45.8 billion to $46.2 billion in revenue (with a revenue re-acceleration in the second half of FY2027). The consensus forecast here was $13.12 per share on $46.06 billion in revenue.
Earnings Call Insights
On the earnings call4, Chair and CEO Marc Benioff talked about how he doesn’t see AI models from the likes of Anthropic as a major threat to the business. His view is that to convert raw intelligence into reliable, accurate, scalable enterprise work, you need infrastructure that offers reliability and security and that this is the company’s big differentiator.
Benioff also noted that Salesforce’s new offerings are helping the company capture customers from competitors. Recently, the Salesforce IT service product has captured customers from rival ServiceNow while the company’s new life sciences product has attracted customers from rival Veeva.
Wall Street’s Reaction
After the Q4 earnings, several Wall Street firms lowered their price targets5 for Salesforce stock. For example, Barclays went to $252 from $265 while Morgan Stanley went to $287 from $298. However, the average analyst price target remains well above the current share price. At present, the average price target is $306, indicating potential upside of around 70%.
Footnotes:
1Google Finance, as of February 26, 2026
2Salesforce Investor Relations, Salesforce Delivers Record Fourth Quarter Fiscal 2026 Results, as of February 25, 2026
3CNBC, Salesforce shares are down 4% in premarket on mixed guidance and $50 billion buyback commitment, as of February 25, 2026
4Investing.com, Earnings call transcript: Salesforce Q4 2026 earnings beat expectations, as of February 25, 2026
5Investing.com, Salesforce Inc (CRM), as of February 25, 2026
