Salesforce lifts full-year outlook as Agentforce ARR surges to $1.2 billion

Salesforce reported first-quarter fiscal 2027 revenue of $11.1 billion on May 27, marking a 13% increase year over year. The company subsequently raised its full-year FY27 revenue guidance to a range of $45.9 billion to $46.2 billion, up from the previous estimate of $45.8 billion to $45.9 billion issued in February. The upgrade follows a strong performance in its artificial intelligence segment, with annual recurring revenue (ARR) for its Agentforce product reaching $1.2 billion, a 205% increase from the prior year.

Non-GAAP diluted earnings per share rose 50% year over year to $3.88, while GAAP diluted EPS increased 52% to $2.42. The company also reported a non-GAAP operating margin of 34.8% and free cash flow of $6.6 billion, up 4% year over year. Current remaining performance obligation stood at $33.6 billion. These figures include a $444 million contribution from Informatica, which Salesforce acquired in November 2025. The acquisition accounts for $1.1 billion of the $3.4 billion in combined Agentforce and Data 360 ARR, suggesting the standalone Agentforce figure provides a clearer view of internal AI product traction.

Usage metrics for its AI offerings accelerated significantly, with Salesforce delivering 3.8 billion Agentic Work Units across Agentforce and Slack, up 111% quarter over quarter. The company processed more than 28.6 trillion tokens, a 152% increase from the previous quarter. Additionally, Slack’s Model Context Protocol feature surpassed 1 million active users within six weeks of its launch. CEO Marc Benioff described agentic AI as the biggest growth opportunity for both customers and the company.

Despite the earnings beat, Salesforce shares dropped roughly 3% in early post-market trading. This decline followed second-quarter revenue guidance of $11.27 billion to $11.35 billion, which fell slightly below the Wall Street consensus estimate of $11.36 billion. Robin Washington, president and chief financial and operating officer, stated on the earnings call that the company remains confident in delivering organic revenue acceleration in the second half of FY27.

On capital allocation, Salesforce returned $27.5 billion to shareholders in the quarter, comprising $27.1 billion in share repurchases and $365 million in dividends. The company entered a $25 billion accelerated share repurchase program with an upfront delivery of 103 million shares, representing approximately 80% of expected repurchases, with final settlement expected in Q3 FY27. The company updated its full-year cash flow growth guidance to approximately 4% to 5% year over year, reflecting debt issuance tied to the accelerated share repurchase.