Enterprise-software leader Salesforce (NYSE: CRM) reported strong fiscal fourth-quarter results this week, with revenue and adjusted earnings per share both coming in ahead of analysts’ consensus forecasts for the two metrics. Additionally, it announced a new $50 billion share repurchase authorization.
But the company’s guidance didn’t show evidence that AI was creating a clear inflection in the software specialist’s consolidated top-line growth trends.
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Still, overall, the company continues to grow at a robust rate, and its repurchase program adds to the bull case. So, is the stock a buy? After all, shares remain beaten down from their levels last year. The stock is down about 24% year to date as of this writing.
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With the help of a strong fiscal Q4, the software company’s total fiscal 2026 revenue rose 10% year over year to $41.5 billion. Notably, Salesforce’s revenue growth ticked up a bit in Q4. On a constant-currency basis, Salesforce said revenue grew 10% year over year in the fourth quarter, accelerating from 8% constant-currency growth in the prior quarter.
Of course, a strong suit for Salesforce for a long time has been cash flow. And that strength persisted throughout the year and in fiscal Q4. For fiscal 2026, Salesforce’s operating cash flow increased 15% to $15.0 billion, and free cash flow rose 16% to $14.4 billion — a formidable figure for a company with a $190 billion market capitalization.
Showing how demand is faring, Salesforce’s remaining performance obligations (RPO), which the company defines as contracted revenue that has not yet been recognized, totaled $72.4 billion at quarter-end — up 14% year over year. The current portion (the portion expected to be recognized over the next 12 months) of that figure was $35.1 billion, up 16%.
Highlighting one way AI is…
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