Salesforce, Inc.

Salesforce is a leading Customer Relationship Management (CRM) software company, which has been at the forefront of AI adoption, enables businesses to empower their employees and AI agents to effectively manage their customer relationships in terms of sales, service, marketing, collaboration, integration, analytics, and automation, helping drive productivity.

Salesforce has grown annual revenue to over $37 billion in FY25 from $13 billion in FY19, an outstanding achievement. Their strong growth has historically resulted in a very expensive stock but recent fears of AI displacement have crushed the stock (along with other software stocks some of which remain very expensive or unprofitable) to attractive normal market multiple levels.

Ests                  4Q26   1Q27   FY26    FY27

Revs                 11.19   10.98   41.49   46.01b

EPS                  3.05     3.01     11.77   13.12

                                    +16%   +15%   +11%

P=191.94, Net Debt 4.9bn, additional 24bn Unearned Revs, TTM EPS=12.73, P/E=15X

4Q26 3.81 vs 2.78  (est 3.05), FY26 EPS 12.73 vs 10.20

• Feb 25, 2026, P=191.94, TTM EPS=12.73, P/E=15X

• Revs +12% to 11.2bn (est 11.19), GM 80.9% vs 80.6%, OM 34.2% vs 33.1%

• OCF 5.46bn vs 3.97bn

• Wins >$1m +26% y/y, >$10m +33% (won up to $5.6bn 10y deal with U.S. Army), 12 deals >10m, never done more than 10 deals >10m

• Closed Informatica deal for 8.2bn

• Current RPO +16% to 35.1bn, Total RPO +14% to 72.4bn, Unearned Revs +17% to 24.3bn

• Agentforce and Data 360 ARR >1.8bn bn ex 1.1bn from Informatica,

• New 50bn share repurchase authorization (27% of market cap), commented balance sheet is underleveraged

• Discussed numerous aspects of working with AI companies like Anthropic, etc

• 1Q27 Guidance: Revs +12-13% to 11.03-11.08bn (est 10.98), EPS 3.11-3.13 (est 3.01)

• FY27 Guidance: Revs +10-11% to 45.8-46.2bn (est 46.0), expects organic acceleration in 2H, EPS 13.11-13.19 (est 12.12), mgmt sees 63bn in Revs in FY30 (11% CAGR)