synopsis

The company closed 5,000 Agentforce deals since October, more than 3,000 of which were paid.

Customer relationship software company Salesforce, Inc. (CRM) issued subpar guidance despite reporting better-than-expected bottom-line results and roughly in-line revenue for the fiscal year 2025 fourth quarter.

The San Francisco, California-based company reported fourth-quarter (Q4) adjusted earnings per share (EPS) beat consensus estimate and revenue roughly in line with the consensus.

Here’s how the quarterly metrics compare with year-ago numbers:

  • Adjusted EPS: $2.78 Vs. last year’s $2.29, $2.61 consensus (Finchat-compiled)
  • Revenue: $9.99 billion, up 8% year over year (YoY) versus $10.04 billion consensus

While the bottom-line result exceeded the guidance of $2.57 to $2.62, the revenue aligned with the guidance of $9.90 billion to $10.10 billion.

Salesforce’s subscription revenue climbed 8% YoY to $9.45 billion.

The non-GAAP operating margin stood at 33% compared to 30.5% in the year-ago quarter.

Salesforce said its remaining performance obligation (RPO) rose 9% YoY to $30.2 billion, slowing from the 10% growth in the third quarter. Total RPO was up 11% at $63.4 billion

The company noted that it closed 5,000 Agentforce deals since October, more than 3,000 of which were paid. Agentforce is Salesforce’s autonomous artificial intelligence (AI) agent. Data Cloud and AI annual recurring revenue (ARR) rose 120% YoY to $900 million.

Marc Benioff, the CEO of Salesforce, said, “We had an incredible quarter and year, with strong performance across all our key metrics, including the highest cash flow in our company’s history and more than $60 billion in RPO.”

Salesforce expects first-quarter adjusted EPS of $2.53-$2.55 and revenue of $9.71 billion to $9.76 billion, trailing the consensus estimates of $2.62 and $9.91 billion, respectively.

The company’s fiscal year 2026 guidance calls for non-GAAP EPS of $11.07-$11.17 and revenue of $40.5 billion to $40.9 billion. This compares to the average analysts’ estimates of $11.21 and $41.36 billion, respectively.

Undeterred by the below-consensus guidance, retail investors maintained their positive stance. On Stocktwits, sentiment toward Salesforce stock remained ‘bullish’ (58/72), although it tempered. The message volume increased to ‘extremely high.’  

CRM sentiment and message volume February 27, premarket as of 6:07am ET | Source: Stocktwits

Salesforce was among the top ten trending stock on the platform in the premarket session.

A bullish retailer said he aims for an entry below the $275 level.

Another user expected a faster recovery and a move toward the $400 level.

In premarket trading, Salesforce stock fell 4.37% to $293.89, the lowest since early November. It has shed about 8% year-to-date.