Abstract
Salesforce.com will report fiscal results on February 25, 2026 Post Market; this preview summarizes consensus expectations for revenue, margin, and EPS, assesses segment trends, and compiles prevailing analyst views for the upcoming quarter.Market Forecast
Consensus points to fiscal-quarter revenue of $11.16 billion, with the company’s prior guidance and recent estimates implying year-over-year growth of 11.21%; forecasts embed mid-to-high 70% gross margin, a net profit margin in the low 20% area, and adjusted EPS around $3.04 with an implied 16.71% YoY increase. The operating outlook emphasizes stable expansion in subscription and support, continued operating leverage, and resilient demand across cloud applications; analysts highlight improving incremental margins as a key watch item. The most promising segment remains subscription and support, projected to contribute the bulk of revenue; professional services and other are expected to remain a small share.Last Quarter Review
Salesforce.com’s previous fiscal quarter delivered revenue of $10.26 billion, a gross profit margin of 78.02%, GAAP net income attributable to shareholders of $2.09 billion, a net profit margin of 20.33%, and adjusted EPS of $3.25, with year-over-year growth for revenue at 8.63% and adjusted EPS at 34.86%. The company’s profitability benefited from disciplined expense control and efficiency initiatives, supporting healthy conversion of revenue to operating profit. Main business highlights: Subscription and support generated $9.73 billion, while professional services and other contributed $0.53 billion, keeping the revenue mix skewed to high-margin recurring streams.Current Quarter Outlook
Core cloud portfolio (Subscription and Support)
Subscription and support are positioned to account for the overwhelming majority of revenue this quarter, reflecting multi-cloud adoption and cross-sell opportunities. The expected revenue increase of roughly 11% year over year suggests steady demand across Sales Cloud, Service Cloud, Platform, and Data Cloud, with renewal activity and upsell motions underpinning predictability. Margin quality is supported by the structural efficiency of the SaaS model, while the company’s cost discipline should preserve gross margin in the high-70% range and gradually lift operating margin.The key driver this quarter is the continued monetization of the data and AI-led product cycle, including add-on usage for analytics and automation and a deepening integration across clouds. As large customers expand usage footprints, attached rates for platform and industry solutions can add to average contract value, sustaining double-digit YoY growth. Management commentary around net revenue retention and enterprise bookings will be central to gauging the durability of this trajectory through the fiscal year.
Potential headwinds include elongated deal cycles in select enterprise verticals and a cautious IT spending backdrop in discretionary categories. Even if top-line growth holds near low double digits, mix shifts toward platform and data products can influence near-term attach dynamics. Investors will parse large-deal metrics and remaining performance obligation updates for evidence of steady pipeline conversion.
High-potential growth engine (Data, AI, and Platform-related revenue)
The most promising growth vector continues to be the data- and AI-enriched layers within the broader platform, which benefit from greater adoption of automation, analytics, and integration workloads. While not broken out explicitly as a stand-alone revenue line in financials, attach momentum is visible within subscription and support and is expected to grow faster than the corporate average. This quarter’s setup implies contribution from expanded usage-based elements and AI-related SKU uptake, which can lift both revenue growth and gross profit mix.EBIT is forecast at approximately $3.82 billion, implying an EBIT YoY growth of 16.15% and signaling that operating leverage remains intact as AI features scale. If realized, this would support a sequential step-up in adjusted EPS efficiency relative to revenue growth, a key factor for valuation resilience. Watch for disclosures on paid AI adoption and the breadth of data integrations, as these indicators will likely dictate how quickly the growth premium compounds into the next fiscal periods.
Risks to this segment’s momentum include the pace of enterprise AI budget allocation and governance considerations that can lengthen testing cycles before production deployment. Competitive intensity in data platforms and workflow automation also requires continuous innovation. Nevertheless, the current quarter’s forecasts imply that incremental AI attach is already factored into expectations, setting the stage for modest upside if execution remains consistent.
Stock-price swing factors (Margins, free cash flow, and large-deal trends)
Share-price sensitivity is likely to center on profitability cadence and cash generation, given an already well-understood revenue growth profile. Consensus adjusted EPS of about $3.04, up an implied 16.71% year over year, reflects anticipated operating leverage; any deviation linked to expense run-rate, hiring, or investment timing could drive an outsized reaction. Investors will also look for confirmation that net profit margin can stay in the 20% zone, even as the company invests in AI go-to-market and data infrastructure.Large-deal flow and enterprise renewal rates remain crucial, as swings in mega-deals can significantly influence quarterly billings and remaining performance obligation. A solid print on these metrics would reinforce the sustainability of double-digit growth without sacrificing profitability. Free cash flow conversion and capital return commentary may further shape sentiment, especially given the recent step-up in buyback authorization cadence and management’s focus on efficient capital deployment.
Analyst Opinions
The balance of recent analyst commentary skews constructive, with a majority expecting in-line to modestly better results and sustained double-digit revenue growth driven by subscription and support momentum and AI-led attach. Several well-followed institutions project steady mid-70% gross margin and continued operating leverage, with an emphasis on expanding EBIT and EPS faster than revenue. Price target revisions over the past months have been predominantly upward or maintained with positive bias, reflecting confidence in execution and monetization of the data and AI roadmap.The bullish view argues that the company’s high recurring revenue mix, disciplined expense management, and early benefits from AI integration create a supportive setup for margin durability and EPS compounding. Analysts also highlight improving pipeline visibility, with large-enterprise expansions and cross-cloud adoptions expected to underpin bookings and RPO. On balance, the majority stance anticipates a clean print relative to consensus, with upside risk around profitability metrics if operating efficiency trends persist.
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