Salesforce Inc
Q1 2027 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.04%.
Did CRM Beat Earnings? Q1 2027 Results
Salesforce delivered a blowout first quarter for fiscal 2027, posting earnings per share of $3.88 against a consensus estimate of $3.13, a beat of 24.08% that marked the company's fifth consecutive quarter of exceeding EPS expectations. Revenue climbed 13.3% year-over-year to $11.13 billion, edging past the $11.06 billion consensus as investors eager to see AI spending translate into durable enterprise software growth got their answer. The standout driver was the explosive momentum in Agentforce, with Agentforce and Data 360 combined ARR reaching nearly $3.40 billion, up over 200% year-over-year, signaling that the company's pivot toward agentic AI is converting enthusiasm into committed recurring revenue. A $25 billion accelerated share repurchase program, funded by new debt, reduced the diluted share count to 871 million from 970 million a year ago, amplifying per-share results meaningfully. Looking ahead, Salesforce raised its full-year FY27 revenue guidance midpoint to a range of $45.90 billion to $46.20 billion and guided Q2 revenue of $11.27 billion to $11.35 billion, with management expressing confidence in organic acceleration through the second half.
- Agentforce and Data 360 combined ARR reached nearly $3.4 billion, up over 200% Y/Y
- Agentforce ARR of $1.2 billion, up 205% Y/Y
- 3.8 billion Agentic Work Units delivered, growing 111% Q/Q
- 28.6 trillion tokens processed to date, up 152% Q/Q
- Informatica acquisition contributing $444 million to Q1 revenue
- Bookings from Agentforce One Edition and Agentforce for Apps grew nearly 60% Y/Y
- Current remaining performance obligation of $33.6 billion, up 14% Y/Y
- More than 50% of Agentforce and Data 360 bookings came from existing customers in Q1
“This was an outstanding quarter for Salesforce — record revenue, record deals, and cash flow. Agentic AI is the biggest growth opportunity for our customers, and for Salesforce. We're the #1 Agentic CRM, with Agentforce now powering every Customer 360 application and helping tens of thousands of businesses across every industry transform into Agentic Enterprises. With more than $1 billion in Agentforce ARR, $3.4 billion in combined AI and data ARR, and 3.8 billion Agentic Work Units delivered for our customers, Salesforce has never been more essential.”
Salesforce CEO, on the earnings call
Forward Guidance & Outlook
Salesforce initiated Q2 FY27 revenue guidance of $11.27 billion to $11.35 billion (up 10%-11% Y/Y), including slightly above 4pts Informatica contribution, and non-GAAP diluted EPS of $3.25 to $3.27. The company raised the midpoint of full-year FY27 revenue guidance to $45.9 billion to $46.2 billion (up 11% Y/Y), maintained non-GAAP operating margin guidance at 34.3%, and guided full-year non-GAAP diluted EPS of $14.06 to $14.12. Operating and free cash flow growth guidance was updated to approximately 4%-5% Y/Y to reflect the impact of the $25 billion debt issuance for the ASR. Management expressed confidence in organic revenue acceleration in the second half of FY27, driven by growth in Sales, Service, Slack, Agentforce, and Data 360, and remains on track to deliver FY30 targets.
CRM YoY Financials
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Figures from SEC filings and company reports. Not investment advice.