Salesforce Shares Sink as 2027 Outlook Fails to Excite Investors

Nauman Khan

Thu, February 26, 2026 at 11:53 PM GMT+9 1 min read

In this article:

CRM

+3.45%

This article first appeared on GuruFocus.

Salesforce (NYSE:CRM) shares fell about 5% in early trading after the cloud software provider issued fiscal 2027 revenue guidance that represented a modest miss compared with Wall Street expectations.

The company forecast fiscal 2027 revenue of $45.8 billion to $46.2 billion, compared with analyst estimates near $46.06 billion. The outlook raised investor concerns that growth may remain steady rather than accelerate as competition intensifies across artificial intelligence-driven enterprise software markets.

Is CRM fairly valued? Test your thesis with our free DCF calculator.

Salesforce reported fiscal 2026 revenue of $41.5 billion, up 10% year over year, while fourth-quarter revenue rose 12% to $11.2 billion. Remaining performance obligations, which reflect contracted future revenue, reached $72 billion at the end of the quarter, increasing 14% from a year earlier.

Management highlighted continued adoption of AI-focused offerings, including Agentforce and Data 360, which together generated more than $2.9 billion in annual recurring revenue. The company also pointed to ongoing large enterprise deal activity, including a long-term contract with the U.S. Army.

Salesforce increased its share repurchase authorization to $50 billion and raised its quarterly dividend to $0.44 per share as it continues investing in AI capabilities while returning capital to shareholders.

Terms and Privacy Policy

Privacy Dashboard

More Info