salesforce(US:CRM)2026-02-25 21:03Financial Performance - Salesforce reported record Q4 FY26 revenue of $11.2 billion, up 12% year-over-year, and full-year revenue of $41.5 billion, up 10% year-over-year[3][5] - Total revenues for the fiscal year ended January 31, 2026, reached $41,525 million, compared to $37,895 million in the previous year, reflecting a growth of 6.9%[39] - Total revenues for the three months ended January 31, 2026, were $11,201 million, a 12.1% increase from $9,993 million in the same period of 2025[27] - Subscription and support revenues accounted for 95% of total revenues for both the three months ended January 31, 2026, and 2025[29] - Net income for the fiscal year ended January 31, 2026, was $7,457 million, up from $6,197 million in 2025, representing a 20.3% increase[27] - Net income for the three months ended January 31, 2026, was $1,943 million, an increase from $1,708 million in the same period of 2025, representing a growth of 13.7%[31] Cash Flow and Expenses - Operating cash flow for FY26 was $15 billion, reflecting a 15% year-over-year increase, with free cash flow at $14.4 billion, up 16% year-over-year[5] - Cash provided by operating activities for the three months ended January 31, 2026, was $5,464 million, compared to $3,970 million in the same period of 2025, a growth of 37.6%[31] - Free cash flow for Q1 2026 was $5,323 million, up from $3,816 million in Q1 2025, representing a 39.5% increase[44] - Operating expenses for the fiscal year ended January 31, 2026, totaled $23,924 million, compared to $22,047 million in 2025, reflecting a 8.5% increase[27] - Stock-based compensation expense for the fiscal year 2026 was $3,480 million, compared to $3,181 million in 2025, an increase of 9.4%[42] - Capital expenditures for the fiscal year 2026 were $594 million, down from $658 million in 2025, reflecting a decrease of 9.7%[44] Guidance and Projections - Salesforce's guidance for Q1 FY27 revenue is projected between $11.03 billion and $11.08 billion, with a growth rate of 12% to 13% year-over-year[10][11] - Full-year FY27 revenue guidance is set at $45.8 billion to $46.2 billion, indicating a growth of 10% to 11% year-over-year[11] - Salesforce aims for $63 billion in revenue by FY30, leveraging the growth of Agentforce and Data 360[3][11] Performance Obligations and Revenue Recognition - Total remaining performance obligation (RPO) reached $72.4 billion, an increase of 14% year-over-year[5] - Remaining performance obligation (RPO) as of January 31, 2026, was $72.4 billion, compared to $59.5 billion as of October 31, 2025, indicating a growth of 21.5%[33] - Unearned revenue at the end of January 31, 2026, increased to $24,317 million from $20,743 million at the end of January 31, 2025, marking a growth of 17.5%[34] - The company recognized $10,313 million in revenue over time for the three months ended January 31, 2026, compared to $9,182 million in the same period of 2025, an increase of 12.3%[34] Strategic Investments and Assets - The company’s strategic investments rose to $7,591 million as of January 31, 2026, up from $4,852 million in 2025[30] - Total assets increased to $112,305 million as of January 31, 2026, compared to $102,928 million in 2025[30] - Cash and cash equivalents decreased to $7,327 million as of January 31, 2026, from $8,848 million a year earlier[30] Shareholder Returns - The company has authorized a $50 billion share repurchase program, replacing all previously unused authorizations[5][11] - Quarterly dividend increased to $0.44 per share, representing a 5.8% year-over-year increase[8] Other Metrics - Agentforce annual recurring revenue (ARR) reached $800 million, up 169% year-over-year, contributing to a total of over 29,000 deals closed, a 50% increase quarter-over-quarter[3][6] - Non-GAAP income from operations for Q1 2026 was $3,836 million, up from $3,303 million in Q1 2025, representing a 16.1% increase[39] - Non-GAAP diluted net income per share for Q1 2026 was $3.81, compared to $2.78 in Q1 2025, indicating a 37.0% increase[43] - Non-GAAP operating margin for the fiscal year 2026 was 34.1%, compared to 33.0% in 2025, showing an improvement of 1.1 percentage points[39] - GAAP operating margin for Q1 2026 was 16.7%, down from 18.2% in Q1 2025, reflecting a decrease of 1.5 percentage points[39]