TLDR
- Salesforce stock slips despite record Q1 revenue and stronger AI demand today
- Salesforce Q1 profit jumps as Agentforce ARR tops $1.2B amid CRM pullback now
- CRM falls after hours as $25B buyback and AI growth shape Q1 market view now
- Salesforce raises FY27 revenue outlook as shares trade lower after Q1 results
- Agentforce and Data 360 growth lift Salesforce, but CRM stock still drops
Salesforce (CRM) shares fell after the company posted record first-quarter fiscal 2027 results, as traders weighed strong earnings against heavy buyback activity. Salesforce (CRM) closed at $177.51, down 0.88%, before slipping after hours to $177.00, down 0.29%. The move showed a muted market response despite stronger revenue, higher margins, and fast growth across AI products.
Salesforce Revenue Rises as AI Demand Supports Growth
Salesforce reported first-quarter revenue of $11.1 billion, up 13% from the same period last year. Subscription and support revenue reached $10.6 billion, up 14% year over year. Informatica added $444 million to total revenue after its integration into Salesforce results.
Current remaining performance obligation reached $33.6 billion, up 14% year over year. Total remaining performance obligation stood at $67.9 billion, up 11% from last year. These figures showed continued demand across Salesforce’s software contracts and enterprise customer base.
Salesforce also reported GAAP earnings per share of $2.42, up 52% year over year. Non-GAAP earnings per share reached $3.88, up 50% from the same quarter last year. GAAP operating margin stood at 21.1%, while non-GAAP operating margin reached 34.8%.
Agentforce, Data 360 and Buybacks Shape the Quarter
Salesforce highlighted strong growth across Agentforce and Data 360 during the quarter. Combined annual recurring revenue from Agentforce and Data 360 reached nearly $3.4 billion, up over 200% year over year. Agentforce ARR reached $1.2 billion, while Informatica Cloud ARR stood at $1.1 billion.
The company said Agentforce and Slack delivered 3.8 billion Agentic Work Units to date. That figure rose 111% from the previous quarter. Salesforce processed more than 28.6 trillion tokens, up 152% quarter over quarter.
Salesforce also returned $27.5 billion to shareholders during the quarter. That total included $27.1 billion in share repurchases and $365 million in dividends. The company entered a $25 billion accelerated share repurchase plan, with 103 million shares delivered upfront.
Salesforce Raises Revenue Outlook for Fiscal 2027
Salesforce guided second-quarter fiscal 2027 revenue between $11.27 billion and $11.35 billion. That range implies growth of 10% to 11% from the same period last year. The company expects Informatica to add slightly above 4% points to second-quarter growth.
For full-year fiscal 2027, Salesforce raised its revenue midpoint. The company now expects revenue between $45.9 billion and $46.2 billion. It also expects full-year growth of 11%, including about three percentage points from Informatica.
Salesforce maintained its full-year non-GAAP operating margin outlook at 34.3%. However, it updated GAAP operating margin guidance to 20.6%. The company also expects operating cash flow and free cash flow growth of about 4% to 5%.
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