AI disruption didn't show up in Salesforce results. But the fears are hard to shake (www.cnbc.com)

Salesforce reported its fourth-quarter results for 2026, which exceeded expectations with a revenue growth of 12% year-over-year, reaching $11.2 billion, and an adjusted earnings per share of $3.81, surpassing forecasts by 77 cents. The strong performance was largely driven by the company’s AI platform, Agentforce, which has secured over 29,000 deals since its launch and is now contributing $800 million in annual recurring revenue. However, despite these positive numbers, Salesforce shares dropped about 4.5% in after-hours trading, reflecting investor concern over the potential disruption AI poses to traditional software models. The firm also noted mixed results in other subscription revenue areas, which fell short of analyst expectations. The significance of this announcement lies in the growing integration of AI within enterprise software, as Salesforce aims to position Agentforce as a cornerstone of its business strategy. Despite the recent success stories from major clients, market perception continues to view the company’s legacy systems skeptically, raising questions about sustained growth in a rapidly evolving technological landscape. Furthermore, concerns about the company’s GAAP margin performance and overall organic growth could influence investor sentiment moving forward, especially as Salesforce’s guidance for fiscal 2027 reflected some caution with forecasts below market expectations. This situation underscores the broader challenges faced by software companies in adapting to AI advancements while maintaining traditional revenue streams.