Salesforce has revealed its Q4 and full-year Fiscal 2026 results with some impressive metrics to battle narratives of a so-called ‘SaaSpocalypse’ – but CRM stock still dipped in extended trading as it forecasted revenue below Wall Street estimates.
The company’s Founder and CEO, Marc Benioff, spoke to the TBPN show ahead of the results, confidently telling the hosts that, “We’ve all been reading about the SaaSpocalypse, but we’ve got our SaaSquatch that’s eating the SaaSpocalypse!” He also said this “wasn’t his first SaaSpocalypse”, referencing market trouble during the Covid pandemic, as well as the 2008 financial crisis.
Benioff also revealed that Salesforce had closed 29,000 Agentforce deals, up 50% quarter-over-quarter (Q/Q), while Agentforce ARR reached $800M. At the end of Q3, Agentforce ARR stood at $540M – meaning the latest figure represents an explosive growth rate of 48% in ARR for just one quarter. In another win for Salesforce, FY26 revenue was $41.5B – up 10% year-over-year (Y/Y) – and Benioff also revealed that the company had “converted five ServiceNow customers” to use Salesforce’s own ITSM instead.
But the impressive Agentforce and overall revenue figures were seemingly not enough of a ‘SaaSquatch’ to squash the ‘SaaSpocalypse’, as Benioff had claimed, with Salesforce forecasting fiscal 2027 revenue below Wall Street expectations on Wednesday. Shares fell more than 5% in extended trading. Salesforce expects annual revenue in the range of $45.8B to $46.2B, with the midpoint coming in below an estimate of $46.06B, according to Reuters, citing data compiled by LSEG.
Salesforce Q4 and FY26 Results in Full
Benioff had some impressive metrics to report, including fourth quarter revenue of $11.2B – up 12% Y/Y and 10% in CC, including a $399M contribution from Informatica, which the company acquired last year. The $11.2B figure comes in slightly ahead of an estimate of $11.18B.
Salesforce FY26 revenue was $41.5B, up 10% Y/Y and 9% in CC, including a $399M Informatica contribution. Other metrics included Q4 subscription and support revenue of $10.7B, up 13% Y/Y; along with FY26 operating cash flow of $15B (up 15% Y/Y) and free cash flow of $14.4B (up 16% Y/Y).
Salesforce revealed that it had returned $14.3B to shareholders, including $12.7B in share repurchases and $1.6B in dividends. It also announced authorization of a $50B share repurchase program, replacing all previously unused authorizations.
Salesforce increased its quarterly dividend to $0.44 per share of outstanding common stock, up 5.8% Y/Y.
Benioff called the results “phenomenal”, citing the $41.5B revenue figure, saying that Salesforce has been rebuilt to become the “operating system for the Agentic Enterprise”.
But Rebecca Wettemann, CEO of industry analyst firm Valoir, said: “Against the backdrop of concerns about AI eating software-as-a-service, Salesforce needs to show it is continuing to translate early AI traction into broader enterprise adoption.”
She added that Salesforce now has to show how customers are moving AI agents from pilots to production at scale.
But Salesforce does seem to be doing this – at least, according to their own metrics. The company revealed how they had introduced Agentic Work Units (AWUs) to measure tasks accomplished by an agent, with 2.4 billion AWUs delivered to date across Agentforce and Slack.
It will be interesting to see how this figure changes over time, but its introduction seems to imply how keen Salesforce is to demonstrate not just Agentforce deals secured, but how Agentforce is being adopted.
Latest Agentforce Figures Revealed
Salesforce has now closed 29,000 Agentforce deals. At the end of Q3, Salesforce said there were 18,500 Agentforce customers – 9,500 of which were paid. Agentforce ARR reached $800M in Q4, which is an impressive boost from the $540M figure at the end of Q3.
A growth rate of 50% per quarter is nothing to be sniffed at. If that growth rate continues, we could see Agentforce cross the $1B ARR threshold this coming quarter ($1.2B at Q1), then $1.8B at Q2, and $2.7B at Q3, then rounding out the year at an incredible $4B. That is if current rates continue, of course.
Marc Benioff also said that the company has consumed nearly 20 trillion tokens, converting them into more than 2.4 billion agentic work units to date.
“Agentic AI is a tailwind for our business, and we’re well on our way to $63B in revenue in FY30,” Benioff said.
Agentforce and Data 360 annual recurring revenue (ARR) combined was over $2.9B, up over 200% Y/Y, but this includes the $1.1B Informatica Cloud ARR figure.
More than 60% of Agentforce and Data 360 bookings in Q4 came from existing customer expansion, and Agentforce accounts in production rose by almost 50% Q/Q.
In FY26, Data 360 ingested 112 trillion records, up 114% Y/Y, including 53 trillion via Zero Copy, up 310% Y/Y, and processed 18 terabytes of unstructured data.
The company also said that every Salesforce Top 10 Q4 win included Agentforce 360, Data 360, Agentforce Sales, Agentforce Service, Agentforce 360 Platform, and Agentforce Analytics. Collectively, Salesforce industry businesses finished the year at $6.6B ARR, up nearly 20% Y/Y
Salesforce also said that they had introduced Agentic Work Units (AWUs) to measure tasks accomplished by an agent. The company revealed that 2.4 billion AWUs have been delivered to date across Agentforce and Slack, growing 57% quarter-over-quarter (Q/Q). Salesforce has also processed more than 19 trillion tokens to date, up 5x Y/Y.
Salesforce FY27 Guidance
The latest results initiate full year FY27 revenue guidance of $45.8B to $46.2B – an increase of 10% to 11% Y/Y and in CC, including roughly 3pts Informatica contribution.
The Salesforce guidance also initiates full-year FY27 subscription and supports revenue growth guidance of slightly under 12% Y/Y and approximately 11% in CC, including around 3pts Informatica contribution.
It also initiates full year FY27 GAAP operating margin guidance of 20.9% and non-GAAP operating margin guidance of 34.3%.
Full year FY27 operating cash flow growth guidance of approximately 9% to 10% Y/Y was also initiated. Full year FY30 revenue target was raised to $63B, including Informatica.
Final Thoughts
Marc Benioff said that this was “not my first SaaSpocalypse”, mentioning market woes in 2008, 2016, and 2020. He later repeated this line, telling investors on a new “earnings show” format: “If there is a SaaSpocalypse, I think it might have been eaten by the SaaSquatch, because there are a lot of companies using a lot of SaaS.”
Investors do not seem convinced, but with Agentforce picking up steam, what Wall Street sees as mediocre results might be considered – amid something of a difficult market – to be pretty positive, all things considered.
