TLDR
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Salesforce beats Q4, posts record FY26, but dips after-hours.
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New $50B buyback replaces old plans as shareholder returns surge.
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Dividend lifted to $0.44 as cash flow hits new highs in FY26.
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Agentforce ARR tops $800M, up 169%, powering AI-driven growth.
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FY27 outlook lifted with Informatica; FY30 target raised to $63B.
Salesforce (CRM) shares closed at $191.94, up 3.52%, after reporting record fiscal 2026 results and expanding capital returns. However, shares fell about 3% in extended trading to near $188. The company beat quarterly estimates, raised long-term targets, and approved a new $50 billion buyback plan.
Strong Q4 Performance Caps Record Fiscal Year
Salesforce posted fourth-quarter revenue of $11.2 billion, up 12% year over year. Adjusted earnings per share reached $3.81 and exceeded the $3.04 consensus estimate. Net income rose to $1.94 billion from $1.71 billion a year earlier.
Subscription and support revenue totaled $10.7 billion and grew 13% from last year. Remaining performance obligation reached $72.4 billion and increased 14% year over year. Current remaining performance obligation came in at $35.1 billion and topped market expectations.
For fiscal 2026, revenue reached $41.5 billion and advanced 10% from the prior year. GAAP operating margin stood at 20.1%, while non-GAAP operating margin reached 34.1%. Operating cash flow increased 15% to $15.0 billion, and free cash flow rose 16% to $14.4 billion.
Expanded Buyback and Dividend Signal Capital Strength
Salesforce authorized a new $50 billion share repurchase program and replaced prior unused approvals. The company returned $14.3 billion to shareholders during fiscal 2026. That total included $12.7 billion in share repurchases and $1.6 billion in dividends.
The board also increased the quarterly dividend to $0.44 per share. The new payout reflects a 5.8% year-over-year increase. The dividend will be payable on April 23, 2026, to holders of record on April 9.
Management outlined fiscal 2027 revenue guidance between $45.8 billion and $46.2 billion. The forecast implies 10% to 11% annual growth and includes Informatica contribution. Adjusted earnings per share are projected between $13.11 and $13.19.
AI Expansion and FY30 Target Lift Shape Outlook
Salesforce continued expanding its Agentforce and Data 360 offerings across enterprise clients. Agentforce annual recurring revenue exceeded $800 million and rose 169% year over year. Combined Agentforce and Data 360 ARR surpassed $2.9 billion.
The company completed its $8 billion Informatica acquisition during the quarter. Informatica contributed $399 million in quarterly revenue and added to subscription growth. Industry-specific businesses ended the year at $6.6 billion in ARR, up nearly 20%.
Salesforce raised its fiscal 2030 revenue target to $63 billion from over $60 billion. The updated goal exceeds prior analyst projections near $59 billion. Shares remain down about 28% in 2026, while the broader market has posted modest gains.
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