---
title: "Salesforce Quarterly Revenue Misses Expectations, Concerns Over AI Disruption Persist | Earnings Insights"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287824699.md"
description: "Salesforce reported quarterly revenue of $11.133 billion, missing the analyst consensus estimate of $11.4 billion, as market concerns over AI disrupting the software industry intensified. Despite a 37% year-over-year increase in GAAP net income, the company raised its fiscal 2027 revenue guidance to a range of $45.9 billion to $46.2 billion. CEO Marc Benioff emphasized AI as a growth opportunity and launched a $25 billion share buy-back program"
datetime: "2026-05-27T21:34:12.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287824699.md)
  - [en](https://longbridge.com/en/news/287824699.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287824699.md)
---

# Salesforce Quarterly Revenue Misses Expectations, Concerns Over AI Disruption Persist | Earnings Insights

Salesforce's reported quarterly revenue slightly missed analysts' expectations, amplifying investor unease amid existing market concerns that artificial intelligence could disrupt the software industry.

In the first quarter of fiscal 2027, Salesforce achieved total revenue of $11.133 billion, a 13% year-over-year increase, falling short of the previous average analyst consensus estimate of $11.4 billion. Of this, Informatica contributed approximately $444 million. Revenue from subscriptions and support services was $10.593 billion, up 14% year-over-year, with Informatica contributing about $428 million.

From a profitability perspective, GAAP operating income for the quarter was $2.347 billion, with a GAAP operating margin of 21.1%. Non-GAAP operating income was $3.874 billion, with a non-GAAP operating margin of 34.8%, a significant expansion from 32.3% in the same period last year. GAAP net income was $2.107 billion, a 37% increase from $1.541 billion in the same period last year.

Current remaining performance obligations (cRPO) reached $33.6 billion, up 14% year-over-year (or 13% on a constant currency basis). Total remaining performance obligations were $67.9 billion, an 11% year-over-year increase, but below the average analyst consensus estimate of $68.9 billion.

Regarding business outlook, Salesforce raised the midpoint of its full-year fiscal 2027 revenue guidance, projecting annual revenue in the range of $45.9 billion to $46.2 billion, representing an approximate 11% year-over-year increase. The revenue guidance for the second quarter is set at $11.27 billion to $11.35 billion, a 10% to 11% year-over-year increase. The company maintained its full-year non-GAAP operating margin target of 34.3% and reiterated confidence in achieving accelerated organic revenue growth in the second half of the fiscal year.

CEO Marc Benioff stated that Agentic AI represents the largest growth opportunity for both Salesforce customers and the company itself. The annual recurring revenue (ARR) for Agentforce has exceeded $1.2 billion. Combined with Data 360-related businesses, the total ARR for AI and data reached approximately $3.4 billion, a year-over-year increase of over 200%. Meanwhile, the company launched a $25 billion accelerated share repurchase program.

Salesforce shares fell about 1.4% in after-hours trading. The stock has declined approximately 33% so far this year.

## Agentforce Accelerates into High Gear

The AI agent business was the most notable growth engine this quarter. Salesforce disclosed that the combined ARR for Agentforce and Data 360 approached $3.4 billion, a year-over-year increase of over 200%. Specifically, Agentforce ARR was $1.2 billion, up 205% year-over-year, while Informatica Cloud ARR was approximately $1.1 billion.

In terms of usage metrics, the Agentforce and Slack platforms cumulatively delivered 3.8 billion Agentic Work Units (AWUs, discrete tasks executed by AI agents), a 111% quarter-over-quarter increase. To date, the company has processed over 28.6 trillion tokens, a 152% quarter-over-quarter increase.

Furthermore, bookings for high-end SKUs centered on Sales and Service businesses—Agentforce One Edition and Agentforce for Apps—grew nearly 60% year-over-year. More than 50% of bookings for Agentforce and Data 360 came from existing customers, demonstrating strong customer repurchase rates and deep penetration capabilities.

At the data processing level, Data 360 ingested 52 trillion records in the single quarter, a 136% year-over-year increase. Of these, 35 trillion were ingested via Zero Copy, a 277% year-over-year increase, along with 12 TB of unstructured data processed. The Slack Model Context Protocol (MCP) surpassed 1 million active users within six weeks of launch.

The public sector business also warrants attention. The Industry Cloud ARR for the public sector exceeded $2 billion, a 23% year-over-year increase, while the volume of AWUs in the public sector grew nearly 400% quarter-over-quarter.

## Massive Buybacks Boost Shareholder Returns, But Also Increase Debt

Salesforce made unprecedented efforts in shareholder returns this quarter. The company returned a total of $27.5 billion to shareholders during the quarter, including approximately $27.1 billion in share repurchases and $365 million in dividends.

The core of these repurchases was a $25 billion accelerated share repurchase (ASR) agreement. Under this agreement, the company has preliminarily received 103 million shares, accounting for about 80% of the estimated total number of shares to be repurchased. Final settlement is expected to be completed in the third quarter of fiscal 2027.

To support this repurchase, the company raised approximately $24.842 billion through debt issuance (net of issuance costs). Due to the share repurchases, the basic weighted-average shares outstanding used to calculate earnings per share have decreased to approximately 868 million.

Regarding the balance sheet, as of April 30, 2026, the company held $8.935 billion in cash and cash equivalents and $2.902 billion in marketable securities. Non-current debt rose significantly to $39.28 billion, a substantial increase from $10.439 billion at the end of the previous year, primarily reflecting the impact of financing arrangements related to the ASR.

## Raised Full-Year Guidance, Robust Outlook for Next Quarter

Looking ahead, Salesforce's revenue guidance for the second quarter of fiscal 2027 is $11.27 billion to $11.35 billion, a 10% to 11% year-over-year increase (approximately 10% on a constant currency basis), with Informatica contributing slightly more than 4 percentage points. The guidance for GAAP diluted earnings per share (EPS) is $1.74 to $1.76, and for non-GAAP diluted EPS is $3.25 to $3.27.

For the full year, the company raised its revenue guidance range to $45.9 billion to $46.2 billion (the midpoint of the previous guidance was lower than this), expecting an approximate 11% year-over-year increase, with Informatica contributing about 3 percentage points. The full-year GAAP diluted EPS guidance range is $7.93 to $7.99, and the non-GAAP diluted EPS guidance range is $14.06 to $14.12. The full-year non-GAAP operating margin remains unchanged at 34.3%.

Notably, the company lowered its full-year guidance for operating cash flow and free cash flow growth to approximately 4% to 5%, reflecting the impact of interest expenses from the $25 billion debt issuance.

Robin Washington, President and Chief Financial and Operating Officer, stated that the company remains confident in achieving accelerated organic revenue growth in the second half of the fiscal year, driven by businesses such as Sales, Service, Slack, Agentforce, and Data 360. He reiterated the expectation to achieve long-term goals for fiscal 2030 on schedule.

Risk Disclosure and Disclaimer

Market investments carry risks; please invest with caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial status, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment decisions made based on this content are the sole responsibility of the investor.

### Related Stocks

- [CRM.US](https://longbridge.com/en/quote/CRM.US.md)
- [IXN.US](https://longbridge.com/en/quote/IXN.US.md)
- [CLOU.US](https://longbridge.com/en/quote/CLOU.US.md)
- [IGV.US](https://longbridge.com/en/quote/IGV.US.md)
- [XSW.US](https://longbridge.com/en/quote/XSW.US.md)
- [CRMG.US](https://longbridge.com/en/quote/CRMG.US.md)
- [INFA.US](https://longbridge.com/en/quote/INFA.US.md)
- [NYSE.US](https://longbridge.com/en/quote/NYSE.US.md)

## Related News & Research

- [Salesforce Q1 Results 'Uninspiring': 'Nothing To Dispel The AI Threat Narrative'](https://longbridge.com/en/news/287951250.md)
- [Salesforce (CRM) targets 44% surge as AI agents gain ground](https://longbridge.com/en/news/287658928.md)
- [Don't use AI when emailing Paul Graham](https://longbridge.com/en/news/287659485.md)
- [Salesforce CEO Marc Benioff Just Declared War On Traditional SaaS](https://longbridge.com/en/news/287940947.md)
- [Salesforce lifts FY2027 outlook after record Q1 and $25B buyback](https://longbridge.com/en/news/287887710.md)