Salesforce Q4 net income climbs 14% to $1.94bn

Core Insights - Salesforce reported a net income of $1.94 billion for Q4 FY26, a 14% increase from $1.7 billion in Q4 FY25, with diluted earnings per share rising to $2.07 from $1.75 [1] - Total revenue for Q4 FY26 was $11.2 billion, reflecting a 12% year-over-year increase, while subscription and support revenue reached $10.7 billion, up 13% annually [1][2] - The company achieved a total revenue of $41 billion for FY26, a 10% increase from $37 billion in FY25 [4][5] Financial Performance - Current remaining performance obligation (RPO) stood at $35.1 billion, growing 16% year-over-year, while total remaining performance obligation increased to $72.4 billion, a 14% rise from last year [2] - Operating cash flow for the full fiscal year was $15 billion, a 15% increase compared to the previous period, and free cash flow reached $14.4 billion, up by 16% [2] - Salesforce returned $14.3 billion to shareholders in FY26 through share repurchases of $12.7 billion and dividends of $1.6 billion [3] Product and Market Developments - Annual recurring revenue from Agentforce and Data 360 surpassed $2.9 billion in Q4 FY26, more than doubling from the previous year [3] - The company delivered 2.4 billion Agentic Work Units (AWUs) in Q4 FY26, marking a 57% increase over the previous quarter [4] - Salesforce processed over 19 trillion tokens during the fiscal year, five times higher than the previous year [4] Future Outlook - Salesforce set guidance for FY27 revenue between $45.8 billion and $46.2 billion, an expected increase of up to 11% year-on-year [5] - Subscription and support revenue growth is forecasted to be just under 12%, with an estimated contribution of three percentage points from Informatica [6]