CRM Shares Dip After-Hours On Weak FY27 Guidance

• The company also said it has allocated $50 billion for a new share buyback program.
• Salesforce’s Q4 revenue and earnings per share numbers beat Wall Street expectations. 
• The firm also upped its FY30 revenue target to $63 billion, up from the over $60 billion put forth in October.

Salesforce Inc. (CRM) stock edged 4% lower in Wednesday’s post-market trade after the company’s fiscal year 2027 revenue estimates fell below Wall Street expectations.

For the fiscal year 2027, CRM expects revenue of $45.8 billion to $46.2 billion, lower at the midpoint than an analyst forecast of $46.02 billion, according to Fiscal.ai data. Adjusted and diluted net income per share in the time frame is expected at $13.11 - $13.19, compared to a Wall Street estimate of $13.12.

The company added that it expects organic revenue re-acceleration in the second half of the fiscal year.

For the first quarter, the company expects revenue of $11.03 - $11.08 billion, marking a growth of 12-13%, and adjusted and diluted net income per share of $3.11 - $3.13. Analysts on average expect earning per share of $3.01 and revenue of $10.98 billion.

The company also said it has allocated $50 billion for a new share buyback program.

Q4 Numbers    

The cloud software company posted Q4 revenue of $11.2 billion, 12% higher year-on-year, and ahead of analysts’ expectations of $11.18 billion, according to data from Fiscal.ai. The company’s earnings per share also beat consensus figures, coming in at $3.81, versus an expectation of $3.05.

Current remaining performance obligation, a key financial metric representing the total, non-cancellable, contracted revenue a company expects to recognize over the next 12 months, came in at $35.1 billion, marking a growth of 16%.

“We delivered a phenomenal quarter to close out a record fiscal 2026, delivering $41.5 billion in revenue, up 10% year-over-year and we passed an incredible milestone, with $72 billion in total RPO, up 14% year-over-year,” CEO Marc Benioff said. “Agentic AI is a tailwind for our business, and we’re well on our way to $63 billion in revenue in FY30.”

Salesforce on Wednesday upped its FY30 revenue target to $63 billion, up from the over $60 billion put forth in October. The $63 billion includes potential revenue from Informatica, the data management company bought by Salesforce recently for about $8 billion.

In the fourth quarter, Informatica contributed $399 million to the company’s total revenue.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around CRM stock rose from ‘bullish’ to ‘extremely bullish’ territory while message volume remained at ‘high’ levels.

CRM stock has dropped 37% over the past 12 months. 

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