The earnings report showed steady growth in the fourth quarter, with Agentforce accelerating in scale. Morgan Stanley noted that Agentforce annual recurring revenue has reached $800 million, up 169% year over year. Data 360 ARR has climbed to $1 billion. Quarterly Agentforce deal volume exceeded 29,000 transactions, representing a 50% sequential increase. More than 60% of Agentforce and Data 360 orders came from expansions within existing customers, indicating deepening usage among the installed base. Nevertheless, the current Agentforce product cycle alone is not yet sufficient to significantly lift Salesforce’s overall valuation. Investors are still looking for clear signs of an acceleration in total revenue growth.
From the key current remaining performance obligations metric, excluding roughly three percentage points of foreign exchange tailwinds and about four percentage points of contribution from the Informatica acquisition, constant-currency cRPO growth stands at approximately 9%. This merely met company guidance and fell short of the stronger upside some investors had hoped for.
JPMorgan pointed out that as Salesforce transitions toward a consumption-based model through Flex Credits, the traditional relationship between cRPO and revenue may weaken. Around 50% of Agentforce orders in the fourth quarter were structured under this model. In addition, the company announced a share repurchase plan of up to $50 billion and reiterated its target of achieving revenue growth reacceleration in the second half of fiscal 2027, providing support for the longer-term outlook.
In contrast, some institutions remain more cautious. Wells Fargo maintained a Neutral rating, arguing that the positive aspects of Agentforce were offset by the lack of a broader earnings surprise, and that clearer signals of growth recovery are needed. Citi Research also reaffirmed its Neutral stance, noting that organic performance fell short of expectations, with marketing and e-commerce segments under pressure. AI-related growth, in its view, is not yet strong enough to drive overall acceleration.
Market Interpretation:
As Agentforce continues to strengthen, Salesforce may gradually advance toward its long-term revenue target of $63 billion by 2030. At the same time, concerns over AI disruption have amplified the recent pullback in the enterprise software sector. Notably, Salesforce has also announced a new $50 billion share repurchase program, replacing all previously unused authorizations, reinforcing management’s confidence in the company’s long-term trajectory.
