1 Number From Salesforce's Earnings That Changes the AI Narrative

Shares of Salesforce (NYSE: CRM) are down nearly 26% so far in 2026. Investors have been concerned whether artificial intelligence (AI) can disrupt the traditional seat-based software-as-a-service (SaaS) model and slow the growth of enterprise software companies. The company's muted fiscal 2027 revenue guidance of $45.8 billion to $46.2 billion, implying 10% to 11% growth, further reinforced fears of a slowdown in Salesforce's growth trajectory in tandem with the enterprise software industry.

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However, the sell-off has ignored several important catalysts from Salesforce's recent earnings results. These include the rapid rise of its Agentforce AI platform, the strength of its recurring SaaS business, and its aggressive capital return program.

The number investors should watch

Salesforce has penetrated the rapidly evolving agentic AI space with Agentforce, an enterprise platform designed to build, deploy, and manage AI agents across a range of use cases, including customer service, sales development, employee support, and deep research.

Agentforce is already witnessing robust enterprise adoption. In the first 15 months since launch, the company has closed more than 29,000 Agentforce deals. Agentforce's annual recurring revenue (ARR) also grew 169% year over year to $800 million by the end of fiscal 2026 (ending Jan. 31, 2026). That single number suggests Salesforce's AI strategy is already translating into real revenue and that the company is adapting to the rapidly evolving AI landscape.

But there is more to Salesforce's AI strategy than Agentforce.

Building a broader AI ecosystem

Salesforce is also strengthening its AI ecosystem with Data 360, a unified data platform that consolidates enterprise data across multiple sources into a single trusted layer. The appeal of these offerings is evident, considering that over 60% of Agentforce and Data 360 bookings came from existing customers in the fourth quarter. Hence, AI agents, coupled with a trusted data layer, are helping the company penetrate deeper into its customers' technology stacks, thereby helping create a sticky client base.

In November 2025, Salesforce completed the $8 billion acquisition of enterprise AI-powered cloud data management player Informatica. Informatica Cloud contributed $399 million to Salesforce's revenue in fiscal 2026. The combination of the Agentforce platform and the Informatica data management platform further strengthens Salesforce's AI ecosystem.

Robust SaaS business

While AI is becoming a key growth driver, Salesforce's core business remains extremely resilient. In fiscal 2026, the company's revenue increased 10% year over year to $41.5 billion. Subscription and support contracts accounted for nearly 95% of total revenue, providing strong visibility into future quarters.

Salesforce is also profitable and reported a non-GAAP (adjusted) operating margin of 34.1% for fiscal 2026. The company exited fiscal 2026 with total remaining performance obligations (RPO, a measure of contracted backlog) of $72 billion, up 14% year over year. This contracted revenue provides multiyear revenue visibility that can support both future growth and ongoing investments.

Capital returns and valuation

Salesforce returned more than $14 billion to shareholders in fiscal 2026, representing 99% of its free cash flow.

Yet, Salesforce is trading at a price-to-earnings ratio of 25.1, dramatically lower than its three-year historical average of 132.06. While some valuation compression is justified as the company matures, investors appear to have reacted strongly to fears that AI will completely disrupt its business model.

Hence, considering its robust business model and AI-powered tailwinds, the stock seems to be a smart pick at current levels.

Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Salesforce. The Motley Fool has a disclosure policy.