Salesforce (CRM) stock traded around $197.94, up 3.23% in early trading session, after delivering stronger-than-expected fourth-quarter results. Yet the real question lingers: if the numbers impressed Wall Street, why did shares hesitate? The San Francisco-based software giant reported fiscal fourth-quarter net income of $1.94 billion, or $2.07 per share. Adjusted earnings reached $3.81 per share, well above analyst expectations of $3.03. Revenue climbed to $11.2 billion, topping the $11.17 billion consensus estimate. Strong quarter. Clear beat. But markets always look ahead. A Record Quarter With Momentum Salesforce posted full-year fiscal 2026 revenue of $41.53 billion, up 10% year over year. Adjusted earnings per share rose to $12.52 from $10.20 the previous year. For the quarter alone, subscription and support revenue increased 13% to $10.68 billion, accounting for more than 95% of total sales. Source: CMG Venture Group via X Non-GAAP operating income grew 16% to $3.84 billion, while operating margin expanded to 34.2%. Segment performance revealed notable trends. Agentforce 360 Platform, Slack and Other revenue surged 37% to $2.7 billion. Agentforce Sales increased 8% to $2.3 billion, while Agentforce Service rose 7% to $2.5 billion. However, Agentforce Marketing and Commerce slipped 1% to $1.4 billion. Regionally, revenue in the Americas grew 9% to $7.3 billion. Europe, the Middle East, and Africa posted 19% growth to $2.8 billion. Asia Pacific revenue rose 14% to $1.1 billion. So far, the growth engine appears intact. The Outlook That Sparked Debate Despite the earnings beat, Salesforce issued fiscal 2027 revenue guidance of $45.8 billion to $46.2 billion. The midpoint of $46 billion fell slightly below the Street’s forecast of $46.11 billion. The company expects adjusted earnings per share between $13.11 and $13.19, aligning with consensus estimates. Subscription and support revenue should grow slightly under 12% year over year. For the current quarter, Salesforce projects revenue between $11.03 billion and $11.08 billion, with adjusted EPS between $3.11 and $3.13. Both ranges exceed analyst expectations. Still, investors reacted cautiously. Software stocks face pressure as markets weigh the disruptive potential of artificial intelligence. Will AI boost productivity and revenue? Or compress margins across the sector? Growth Accelerates, But Structure Faces A Test Salesforce just recorded its fastest year-over-year revenue growth in 12 quarters. Fundamentally, that marks acceleration. However, the stock continues to trade inside a multi-year channel. Technical analysts now focus on whether CRM can hold its long-term support level. The stock recently tagged the 0.786 Fibonacci retracement, an area that often marks a structural turning point. Source: TradingView via X Now, three signals will dictate a shift: sustained support above the long-term channel, formation of a higher low after the recent bounce, and reclaiming overhead supply zones with follow-through strength. If those conditions materialize, the stock may begin building a base. If support fails, the improved fundamentals may not translate into a bullish structure. In the meantime, Salesforce forecasts operating cash flow growth of 9% to 10% and free cash flow growth in the same range. Non-GAAP operating margin should reach 34.3% in fiscal 2027. The company delivered a record quarter. Guidance met most expectations. Now, the market asks a simple question: Will price confirm the growth story? A confirmed bullish momentum in the support zone will offer a confluence for longs.
