Salesforce Inc (NYSE:CRM) stock fell 1.32% (As on February 27, 11:23:47 AM UTC-4, Source: Google Finance) after the company reported weaker-than-expected quarterly revenue and issued a forecast that fell short of analysts’ estimates. Net income rose to $1.71 billion, or $1.75 per share, from $1.45 billion, or $1.47 per share, a year earlier. The top category of subscription and support revenue was service, at $2.33 billion. The figure was up about 8% and below the $2.37 billion consensus among analysts surveyed by Visible Alpha. In the sales category, Salesforce generated $2.13 billion in revenue, up 8% and also trailing Visible Alpha’s consensus of $2.17 billion. From a geographic perspective, Americas revenue grew 8% in nominal and constant currency, EMEA grew 6% or 7% in constant currency, and APAC grew 10% or 14% in constant currency. The company has ended this year with $900 million in Data Cloud and AI ARR. It grew 120% year-over-year. Q4 operating cash flow was nearly $4 billion, up 17% year-over-year. Q4 free cash flow was $3.8 billion, also up 17% year-over-year

Meanwhile, Salesforce said it has completed more than 3,000 paid deals involving Agentforce since October. Agentforce has gotten involved in 380,000 conversations through Salesforce’s help website, with humans getting involved in 2% of cases. Agentforce will make a modest contribution to revenue in fiscal 2026, with a larger effect in the following year. During the quarter, the company introduced its second-generation Agentforce artificial intelligence agent technology, which answers employee questions in the Slack team communications app.

CRM in the fourth quarter of FY 25 has reported the adjusted earnings per share of $2.78, beating the analysts’ estimates for the adjusted earnings per share of $2.61. The company had reported the adjusted revenue growth of 7.6 percent to $9.99 billion in the fourth quarter of FY 25, missing the analysts’ estimates for revenue of $10.04 billion.

The company called for $2.53 to $2.55 in adjusted earnings per share for the fiscal first quarter, with $9.71 billion to $9.76 billion in revenue. Analysts polled by LSEG had anticipated adjusted earnings of $2.61 per share, with $9.9 billion in revenue.

For fiscal 2026, Salesforce is targeting $11.09 to $11.17 in adjusted earnings per share on $40.5 billion to $40.9 billion in revenue, implying 7.4% growth. The LSEG consensus was for adjusted earnings per share of $11.18 on $41.35 billion in revenue. Adjusted operating margin will be about 34% compared with an average analyst estimate of 33.9%.