Salesforce Reports 12% Q4 Revenue Gain and Launches $50B Buyback Program
Salesforce delivered fourth-quarter revenue of $11.2 billion, up 12% year-over-year, and adjusted EPS of $3.81 versus $3.04 expected, with remaining performance obligations at $72.4 billion (up 14%). The company raised its dividend to $0.44 per share and authorized a $50 billion share buyback program.
1. Q4 Earnings Beat
Salesforce reported fourth-quarter revenue of $11.2 billion, a 12% increase from a year ago, and adjusted earnings per share of $3.81, beating consensus forecasts by $0.77. Remaining performance obligations rose 14% to $72.4 billion, underscoring strong recurring revenue visibility.
2. Capital Return and Dividend Increase
The board approved a new $50 billion share repurchase plan citing attractive current valuations and lifted the quarterly dividend to $0.44 per share, marking the first payout increase since early fiscal 2025. These moves signal management’s confidence in free cash flow generation and long-term growth prospects.
3. Guidance for Fiscal 2027 and Q1
For first-quarter fiscal 2027, Salesforce forecasts revenue between $11.03 billion and $11.08 billion with adjusted EPS of $3.11 to $3.13, both above Street estimates. Full-year targets include $45.8 billion to $46.2 billion in revenue and $13.11 to $13.19 in adjusted EPS, aiming toward a long-term $63 billion revenue goal by fiscal 2030.