Salesforce Q4 Earnings Beat Estimates, Revenues Rise Y/Y

Core Insights - Salesforce, Inc. (CRM) reported better-than-expected results for Q4 of fiscal 2026, with non-GAAP earnings of $3.81 per share, exceeding estimates by 25.69% and showing a 37% year-over-year improvement [1] - The company's Q4 revenues reached $11.2 billion, surpassing estimates by 0.32% and reflecting a 12% year-over-year increase, driven by its go-to-market strategy and integration of generative AI [2] Financial Performance - Subscription and Support revenues, which account for 95.5% of total revenues, increased by 13% year over year to $10.7 billion, while Professional Services and Other revenues declined by 3% to $526 million [3] - Non-GAAP operating income was $3.84 billion, up 16.1% from the previous year, with an operating margin expansion of 110 basis points to 34.2% [6] Segment Performance - Revenues from Agentforce Sales grew 8% to $2.3 billion, Agentforce Service increased 7% to $2.5 billion, and Agentforce 360 Platform, Slack and Other saw a significant rise of 37% to $2.7 billion [5] - Revenues from the Americas increased by 9% to $7.3 billion, EMEA grew by 19% to $2.8 billion, and Asia Pacific revenues rose by 14% to $1.1 billion [6] Cash Flow and Shareholder Returns - Salesforce ended Q4 with cash, cash equivalents, and marketable securities totaling $9.57 billion, down from $11.32 billion in the previous quarter, while generating operating cash flow of $5.46 billion and free cash flow of $5.32 billion [7] - The company returned $4.33 billion to shareholders, including $3.94 billion in share repurchases and $391 million in dividends [8] Guidance for Future Performance - For Q1 of fiscal 2027, Salesforce projects total sales between $11.03 billion and $11.08 billion, indicating a growth of 12-13% year over year, with non-GAAP EPS expected in the range of $3.11-$3.13 [9][10] - For fiscal 2027, the company anticipates revenues between $45.80 billion and $46.20 billion, reflecting a 10-11% year-over-year increase, with non-GAAP EPS projected at $13.11-$13.19 [10][11]