SAN FRANCISCO — Salesforce, Inc. (NYSE: CRM) reported record fourth-quarter fiscal 2026 results after the closing bell on Wednesday, February 25, 2026, delivering a massive $50 billion share buyback authorization even as its future revenue outlook fell short of Wall Street expectations.
The software giant’s stock has been under intense pressure leading up to the report, hitting a 52-week low of $185 earlier this week. While the company surpassed consensus estimates for the January quarter, the focus shifted immediately to a cautious full-year revenue guidance that has reignited debates over whether artificial intelligence is “eating the lunch” of traditional SaaS providers.
Key Financial Highlights for Q4 Fiscal 2026
- Remaining Performance Obligation (RPO): Exceeded $72 billion, up 14% year-over-year.
- Current RPO: $35.1 billion, a 16% increase compared to the previous year.
- Operating Cash Flow: Reached $15 billion, driven by the scaling of the “Agentic Enterprise.”
- AI Adoption: The company reported 2.4 billion Agentic Work Units delivered and 19 trillion tokens processed to date.
- Shareholder Returns: A new $50 billion commitment for stock buybacks was announced to support the share price.
The AI Paradox: Opportunity or Threat?
Despite the record numbers, Salesforce shares have slid approximately 30% year-to-date. Analysts from firms like Morgan Stanley and Evercore ISI remain divided. While Evercore recently maintained a “Buy” rating with a $260 price target, other firms have slashed targets ahead of today’s earnings, citing concerns that LLMs (Large Language Models) could allow competitors to “vibe code” cheaper CRM alternatives.
CEO Marc Benioff addressed these concerns during the earnings call, emphasizing that Salesforce is not just a database but an “Agentic” platform. The company highlighted its processing of 19 trillion tokens as evidence that its AI integration is deeply embedded in enterprise workflows.
Market Reaction and Outlook
In the immediate aftermath of the report, CRM stock saw volatile trading. Investors are weighing the massive $50 billion buyback—a clear signal of management’s belief that the stock is undervalued—against a decelerating organic growth rate. The company’s profit margin remains healthy at approximately 17.91%, but the 42% slide from recent highs suggests the market is demanding more aggressive growth from Salesforce’s AI initiatives.
As of Wednesday’s regular session close, Salesforce shares had climbed roughly 2% in anticipation of the results, but the soft revenue guidance for the upcoming fiscal year may test the resolve of retail and institutional traders alike in the coming days.