Salesforce Inc (NYSE:CRM, XETRA:FOO) is experiencing a near-term growth slowdown despite early signs of artificial intelligence adoption, according to analysts at Jefferies. The firm’s insights followed the release of Salesforce’s fourth quarter earnings report on Wednesday, which revealed that growth in current remaining performance obligations (cRPO) increased by 13% in constant currency, a figure that aligned with company guidance but fell short of the upside that investors have come to expect in recent quarters.
Analysts noted that most cloud segments also saw a sequential deceleration. For fiscal 2027, Salesforce projects organic revenue growth of 7% to 8% in constant currency, a slowdown from the approximately 8% achieved in fiscal 2026, keeping growth within single digits. Analysts characterized fiscal 2027 as “an investment year,” with operating margin guidance set at 34.3%, indicating only about 20 basis points of expansion.
Despite this moderation, Jefferies identified encouraging trends associated with the company’s Agentforce platform. They reported “rapid growth in Agentforce metrics,” with cumulative Agentforce deals reaching 29,000, marking a 57% increase from the prior quarter. Annual recurring revenue from Agentforce hit $800 million, rising 48% quarter over quarter, although it still represents merely about 2% of Salesforce’s fiscal 2026 revenue of $41.5 billion.
The analysis also pointed to improving customer adoption, noting that 60% of Agentforce and Data Cloud bookings now originate from the installed base, up from 50% in the previous quarter. Management expressed increased confidence in a reacceleration during the second half of fiscal 2027, suggesting potential for a rebound in growth rates.
However, Jefferies flagged concerns that merit attention. Fourth quarter cRPO growth met guidance but fell short of the 14% to 14.5% levels anticipated by some investors. Organic cRPO growth of 9% year over year also lagged behind the 10% to 11% range seen over the previous seven quarters. Jefferies’ report indicated that the fiscal 2027 outlook suggests “no material AI contribution yet,” with revenue growth guidance representing a deceleration from fiscal 2026, leaving “a material gap to returning to double-digit growth.”
Segment trends presented a mixed picture, as Jefferies noted that most cloud segments decelerated in fiscal Q4, with constant-currency growth slowing sequentially across nearly all disclosed segments except for Sales Cloud, which remained flat, and the Agentforce/Slack/Other category.
Jefferies also emphasized that fiscal 2027 is a year focused on spending. After expanding operating margin by 110 basis points in fiscal 2026 to reach 34.1%, Salesforce is guiding to only modest improvement as it invests in Hyperforce infrastructure, expands sales capacity, and enhances field development efforts aimed at boosting Agentforce adoption.
In terms of capital allocation, Salesforce announced a new $50 billion share repurchase authorization, replacing prior programs. Analysts noted that this figure “would represent 28% of its current market cap if completed,” suggesting that some investors might prefer more aggressive acquisitions focused on AI technology.
Jefferies is forecasting approximately 7.8% organic growth and 10.8% inorganic growth for fiscal 2027, with an operating margin of 34.3%, in line with the company’s guidance. Beyond fiscal 2027, the firm expects about one point of organic revenue expansion, anticipating that Salesforce will stay on track towards its longer-term targets.
Following the earnings report, shares of Salesforce increased by more than 4%, trading around $200, reflecting a market response that recognizes both the challenges and opportunities the company faces in the evolving tech landscape.
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