Salesforce Issues Mixed Performance Guidance, Commits to $50 Billion Stock Buyback

　　After customer service software maker Salesforce reported strong results but its fiscal year 2027 revenue guidance fell short of Wall Street expectations, the company’s stock price dropped 4% in after-hours trading on Wednesday.

　　Below is a comparison of the company’s results and the London Stock Exchange Group (LSEG) consensus expectations:

　　Earnings per share: adjusted at $3.81 vs. expected $3.04

　　Revenue: $11.20 billion vs. expected $11.18 billion

　　According to a statement, Salesforce’s revenue for the fourth fiscal quarter ending January 31 rose 12% year-over-year. This is the company’s fastest growth rate in two years.

　　The company stated it has allocated $50 billion for new stock buybacks. As of Thursday’s close, Salesforce’s stock price has dropped about 28% in 2026, while the S&P 500 index has risen 1% during the same period.

　　Net profit was $1.94 billion, or $2.07 per share, higher than the $1.71 billion, or $1.75 per share, in the same period last year. Adjusted earnings per share excludes stock-based compensation, amortization of purchased intangible assets, and restructuring costs.

　　Current remaining performance obligations (referring to the total of signed but unrecognized revenue and unbilled amounts to be recognized as revenue in the next year) were $35.1 billion. This figure is higher than the StreetAccount consensus expectation of $34.53 billion.

　　Guidance for the first fiscal quarter includes: adjusted earnings per share of $3.11 to $3.13, and revenue of $11.03 billion to $11.08 billion. Analysts surveyed by LSEG previously expected earnings per share of $3.00 and revenue of $10.99 billion.

　　For fiscal year 2027, Salesforce expects adjusted earnings per share of $13.11 to $13.19 and revenue of $45.8 billion to $46.2 billion, which implies growth of 10% to 11%. LSEG’s consensus expectation is earnings per share of $13.12 and revenue of $46.06 billion.

Editor: Zhang Jun SF065