Salesforce slightly beats Q4 revenue expectations

Overview

• AI CRM provider's Q4 revenue slightly beat analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company announced $50 bln share repurchase program

Outlook

• Salesforce initiates FY27 revenue guidance of $45.8 bln to $46.2 bln

• Company expects organic revenue re-acceleration in H2 FY27

• Salesforce raises FY30 revenue target to $63 bln

Result Drivers

• AGENTFORCE GROWTH - Salesforce reported significant growth in Agentforce and Data 360 ARR, with Agentforce ARR up 169% Y/Y

• INFORMATICA CONTRIBUTION - Informatica acquisition contributed $399 mln to Q4 revenue

• CASH FLOW AND SHAREHOLDER RETURNS - Operating cash flow increased 15% Y/Y, with $14.3 bln returned to shareholders

Company press release: ID:nBw4F8D3Ja

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 42 "strong buy" or "buy", 11 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for Salesforce Inc is $300.00, about 61.8% above its February 24 closing price of $185.42

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 21 three months ago

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