Salesforce (NYSE: CRM), the San Francisco-based cloud software powerhouse, delivered a mixed bag of results during its earnings call on Wednesday. Despite reporting robust fourth-quarter results, the company issued a cautious outlook for the next fiscal year.
This underscored the tension between its current growth trajectory and mounting fear among investors about the potential impact of artificial intelligence on the traditional software market.
Salesforce Revenue Grows 12% YoY, Beating Wall Street Estimates
Salesforce posted revenue of $11.20 billion for Q4 2025, up 12% from the previous year. This figure slightly exceeded the $11.18 billion estimate from LSEG and FactSet analysts. According to CNBC data, its earnings-per-share (EPS) stood at $3.81, higher than the expected $3.04. Net income rose from $1.71 billion in Q4 2025 to $1.94 billion this year.
The revenue results included a $399 million contribution from Informatica, the enterprise cloud data management platform acquired by Salesforce for $8 billion in 2025. However, the real star of the company’s earnings was Agentforce, its AI-powered enterprise software designed to automate customer service.
Annual revenue from Agentforce soared to $800 million, a staggering 169% leap from the previous year. The cloud software giant highlighted that demand for Agentforce has risen significantly, further cementing its bet on AI as a catalyst for future growth. Salesforce recently launched an AI Slackbot assistant inside its Slack app.
Despite these strong results, CRM has tumbled more than 5% during after-hours trading on February 25, with the stock losing over 28% of its value so far this year. This decline was largely driven by a lukewarm sales outlook for the fiscal year ending in January 2027. Salesforce forecasts annual revenue in the range of $45.80 billion to $46.20 billion, with Wall Street’s estimates coming in at $46.06 billion. While this guidance was in line with analyst expectations, it failed to excite the market, fueling worries that the company might be losing its ground in the AI-driven software services era.
Salesforce Doubles Down on AI Commitment as Stock Price Dips
Nevertheless, Salesforce is doubling down on its commitment to AI, announcing a $50 billion share repurchase program – a move that is likely to bolster investor confidence. CEO Marc Benioff said the buyback happened because CRM is currently trading at a low. However, it made gains of $811 million from its $330 million investment in AI giant Anthropic.
Salesforce also raised its 2030 revenue forecast to $63 billion, up from October’s projection of $60 billion. It cited agentic AI as a primary driver for this ambitious long-term target. For the first quarter of fiscal 2026, Salesforce expects revenue to land between $11.03 billion and $11.08 billion, slightly above analysts’ expectations of $10.99 billion.
MarketWatch analysts said in a report that Salesforce’s Q4 2025 results for fiscal 2026 were “solid,” but they weren’t enough to shake off the looming AI overhang on its stock. They noted that Agentforce’s explosive growth is impressive, and investors are still waiting to see whether the company can convert this early momentum into sustainable, broad-based adoption across its enterprise customer base.
Salesforce (CRM) closed Wednesday’s trading session at $191.75 – gaining 3.14% on the day. for future growth. Salesforce recently launched an AI Slackbot assistant inside its Slack app.
