- Salesforce (CRM) shares fell 1.65% to $302.16 after hours as Q4 earnings of $2.78 per share beat the $2.61 consensus and revenue hit $10.0 billion versus $10.04 billion expected, but Q1 EPS guidance of $2.53 – $2.55 and FY26 EPS of $11.09 – $11.17 trailed estimates of $2.62 and $11.20, respectively.
- Revenue rose 7.6% year-over-year, with CEO Marc Benioff touting record cash flow and a $60 billion RPO, though Q1 revenue guidance of $9.71 – $9.76 billion and FY26 revenue of $40.50 – $40.90 billion fell below consensus figures of $9.91 billion and $41.37 billion, sparking investor unease.
- Benioff emphasized Salesforce’s lead in the digital labor revolution via its unified Customer 360, Data Cloud, and Agentforce platform, delivering efficiency gains, yet the stock dip reflects market focus on cautious forecasts amid competition and potential spending slowdowns.
Salesforce’s (CRM) stock dipped $5.07, or 1.65%, to $302.16 in after-hours trading Wednesday, a reaction to the company’s full-year 2026 guidance falling short of Wall Street’s hopes, despite a Q4 earnings beat that showcased robust operational strength. The customer- and workplace-analytics leader posted Q4 earnings of $2.78 per share, topping the $2.61 consensus by $0.17, with revenues up 7.6% year-over-year to $10.0 billion, just shy of the $10.04 billion expected, yet its Q1 EPS forecast of $2.53 – $2.55 trailed the $2.62 consensus, and FY26 projections – EPS of $11.09 – $11.17 versus $11.20 and revenue of $40.50 – $40.90 billion against $41.37 billion – drove the post-market slide. CEO Marc Benioff hailed the quarter as a pinnacle, spotlighting record cash flow and a $60 billion remaining performance obligation (RPO), positioning Salesforce as a linchpin in the digital labor shift through its integrated Customer 360, Data Cloud, and Agentforce offerings.
The company’s core strength – unifying consumer data for sales teams – shone in Q4’s 8% revenue climb, reflecting steady demand for its cloud-based tools amid a tech landscape hungry for efficiency, though the modest miss on revenue and cautious guidance hint at headwinds like rising competition or softening enterprise spending. Salesforce’s $60 billion RPO, a gauge of future revenue under contract, underscores a deep client base – thousands of firms leaning on its platform for productivity gains – yet the after-hours drop suggests investors are fixating on the FY26 shortfall, perhaps wary of margin pressures or a slower growth trajectory in a market where AI-driven rivals are gaining ground. Benioff’s optimism about leading a “digital labor revolution” ties to Agentforce, an AI play aimed at automating workflows, a bet that could redefine its edge if execution matches the hype.
Salesforce’s Q4 beat – again, $2.78 per share against $2.61 – pairs with a cash flow high that bolsters its financial heft, yet the Q1 revenue guide of $9.71 – $9.76 billion, below the $9.91 billion consensus, and FY26’s $40.50 – $40.90 billion forecast signal a conservative stance that contrasts with Benioff’s bullish rhetoric. The stock’s 1.65% retreat reflects a market punishing the gap between short-term wins and long-term caution, even as the company’s unified platform – merging analytics, data, and AI – promises cost savings for clients navigating a choppy economic climate. With a $293 billion-plus market cap, Salesforce remains a tech titan, but Wednesday’s after-hours dip underscores the tightrope it walks: delivering today while convincing investors its $11.09 – $11.17 EPS vision for 2026 can still outpace a crowded field.
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