Salesforce pulled out all the stops to convince investors that the AI revolution won't be its death when it announced fourth-quarter earnings on Wednesday.
Salesforce (CRM) came out with quarterly earnings of $3.81 per share, beating the Zacks Consensus Estimate of $3.03 per share. This compares to earnings of $2.78 per share a year ago.
Salesforce Inc (NYSE:CRM, XETRA:FOO) shares fell more than 4% afterhours on Wednesday as the cloud software company reported better-than-expected quarterly results but issued a fiscal 2027 outlook that came in slightly below Wall Street expectations on revenue. For the fourth quarter, Salesforce reported adjusted earnings per share of $3.81, topping the $3.04 expected by analysts.
Salesforce expects revenue to grow in the current fiscal year at about the same rate as it did the year before, as investors worry about AI's threat to software.
Salesforce's results for the January quarter surpassed LSEG consensus, while the software company's full-year revenue picture did not. Investors have been hammering software stocks in recent weeks because of fears of disruption from generative artificial intelligence models.
Salesforce forecast first-quarter revenue above Wall Street expectations on Wednesday, betting on strong demand for its enterprise business software as it ramps up monetization for its artificial intelligence agentic platform.
Landon Swan (@LikeFolio) talks about his firm's recent data on Salesforce (CRM) following the stunning sell-off in shares. He points to the general SaaS stock selling as overblown and expects Salesforce to bounce on its earnings.
Salesforce (NYSE: CRM) reports Q4 FY2026 results after the bell tonight, and there is really only one number that matters.
Salesforce, Inc. has underperformed, but I see recent AI startup fears as overblown and view the current dip as a buying opportunity. CRM's deep data integration, AI-embedded workflows, and Informatica acquisition differentiate it from standalone AI agents and support long-term competitive positioning. Revenue growth is likely to remain modest in the near term, but margin expansion and consistent EPS beats support a valuation rerating to a $200 price target.
Salesforce will try to flip the AI narrative with its earnings report Wednesday afternoon, but some on Wall Street think that might be a challenge.
Shares of U.S. software companies that entered into partnerships with AI startup Anthropic on Tuesday helped lead a rebound in the sector that has been hammered by fears about the disruptive impact of artificial intelligence.
Salesforce (CRM) has faced challenges in the past. Its stock has fallen over 30% within a period of less than 2 months on two occasions in recent years, erasing billions in market value and eliminating significant gains in just one correction.