CRM CY4Q25: Underwhelming “Show Me” Story

Against a backdrop of strong market headwinds, CRM delivered results that weren’t quite enough to excite investors. Excluding the contribution from the Informatica (INFA) acquisition, Q4 cRPO growth was slightly below expectations, and FY27 revenue guidance was also weaker than anticipated. While management emphasized that Agentforce performed strongly with accelerating QoQ ARR growth, as noted in our preview, Agentforce’s growth is cannibalizing some legacy spending. Currently, it represents a short-term negative impact on total CRM spending. Although CRM expects total revenue to accelerate in the second half of FY27, we believe the market will require more signals before the negative sentiment can be reversed.

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Performance Review: Organic Growth Below Expectations

• Total revenue grew 10% YoY in constant currency (cc), which was generally in line with expectations. The INFA acquisition contributed 4% (1% above expectations), leading to an organic growth rate of 6%, which missed expectations.

• Organic cRPO up 9% YoY cc, missed 1ppt for the same reasons.

• By product, trends remained consistent with previous quarters; Sales Cloud and Service Cloud were relatively stable, while Marketing & Commerce Cloud and Tableau remained weak.

• CRM launched an ITSM product to compete directly with NOW (ServiceNow) and mentioned five cases of replacing competitors’ products, though they did not specify the order sizes.

• Margin performance was stable, with an Adj OPM of 34.2% meeting consensus and Adj EPS significantly exceeding expectations.

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Guidance and Outlook Soft