Salesforce misses revenue targets
What happened
Salesforce reported its first revenue shortfall in nearly two decades and the stock fell about 6% after weak forward guidance and signs investors are tiring of AI promises without clear profit impact. The miss rattled the broader SaaS sector—ServiceNow also slid as the market recalibrated growth expectations (parameter.io).
Why it matters
Salesforce reported fourth-quarter revenue of $11.20 billion, full‑year fiscal 2026 revenue of $41.5 billion, total remaining performance obligations of $72.4 billion and said Agentforce ARR reached $800 million, while announcing a $50 billion share‑repurchase authorization and a raised quarterly dividend. (salesforce.com) The company set fiscal‑2027 revenue guidance at $45.8 billion–$46.2 billion (midpoint $46.0 billion), a view that sat below some Street consensus estimates. (cnbc.com) On March 24, 2026 CRM shares traded as low as $182.29, representing an intraday decline of roughly 6.4% on about 18 million shares traded. (marketbeat.com) Several major brokerages trimmed price targets after the quarter—examples include UBS lowering its target to $200, RBC to $210 and TD Cowen to $250. (finance.yahoo.com) The reaction spread across enterprise software: Datadog, CrowdStrike and Microsoft all slid in the session, and ServiceNow finished down roughly 5.7% as investors reevaluated sector growth assumptions. (blockonomi.com) Analyst and market commentary pointed to slower-than-expected monetization of AI agent products and a cautious near‑term demand outlook as the core reasons the guidance failed to reassure investors. (marketscreener.com)
Key numbers
- Salesforce reported its first revenue shortfall in nearly two decades and the stock fell about 6% after weak forward guidance and signs investors are tiring of AI promises without clear profit impact.
- (salesforce.com) The company set fiscal‑2027 revenue guidance at $45.8 billion–$46.2 billion (midpoint $46.0 billion), a view that sat below some Street consensus estimates.
- (cnbc.com) On March 24, 2026 CRM shares traded as low as $182.29, representing an intraday decline of roughly 6.4% on about 18 million shares traded.
- (marketbeat.com) Several major brokerages trimmed price targets after the quarter—examples include UBS lowering its target to $200, RBC to $210 and TD Cowen to $250.
What happens next
- (marketbeat.com) Several major brokerages trimmed price targets after the quarter—examples include UBS lowering its target to $200, RBC to $210 and TD Cowen to $250.
- (blockonomi.com) Analyst and market commentary pointed to slower-than-expected monetization of AI agent products and a cautious near‑term demand outlook as the core reasons the guidance failed to reassure investors.
Quick answers
What happened in Salesforce misses revenue targets?
Salesforce reported its first revenue shortfall in nearly two decades and the stock fell about 6% after weak forward guidance and signs investors are tiring of AI promises without clear profit impact. The miss rattled the broader SaaS sector—ServiceNow also slid as the market recalibrated growth expectations (parameter.io).
Why does Salesforce misses revenue targets matter?
Salesforce reported fourth-quarter revenue of $11.20 billion, full‑year fiscal 2026 revenue of $41.5 billion, total remaining performance obligations of $72.4 billion and said Agentforce ARR reached $800 million, while announcing a $50 billion share‑repurchase authorization and a raised quarterly dividend. (salesforce.com) The company set fiscal‑2027 revenue guidance at $45.8 billion–$46.2 billion (midpoint $46.0 billion), a view that sat below some Street consensus estimates. (cnbc.com) On March 24, 2026 CRM shares traded as low as $182.29, representing an intraday decline of roughly 6.4% on about 18 million shares traded. (marketbeat.com) Several major brokerages trimmed price targets after the quarter—examples include UBS lowering its target to $200, RBC to $210 and TD Cowen to $250. (finance.yahoo.com) The reaction spread across enterprise software: Datadog, CrowdStrike and Microsoft all slid in the session, and ServiceNow finished down roughly 5.7% as investors reevaluated sector growth assumptions. (blockonomi.com) Analyst and market commentary pointed to slower-than-expected monetization of AI agent products and a cautious near‑term demand outlook as the core reasons the guidance failed to reassure investors. (marketscreener.com)
