Salesforce Q1 FY2026: AI and Data ARR Hits $3.9 billion, Shares Jump 20%, $25 billion Buyback

Software stocks have lost roughly $2 trillion in market value over the past year, with investor concerns centered on whether AI agents will replace existing software functions. Salesforce's latest earnings report showed its AI and data business reached $3.9 billion in annual recurring revenue, more than tripling from the prior year. During the quarter, the Data 360 platform processed 104 trillion customer records, up 355% year over year, while AI agents completed 3.2 billion work units, nearly doubling from the previous quarter. Agentforce, launched 18 months ago, grew annual recurring revenue from $100 million to over $1.5 billion, up 240% year over year.

Revenue came in at $11.35 billion, up 11% year over year, with current remaining performance obligations rising 14%. Management raised its full-year revenue guidance to as much as $46.4 billion. The company also announced a $25 billion share repurchase program, its largest ever.

The report showed that nine of the top ten AI companies use Salesforce and Slack products, with total spending from these customers up 435% year over year. Salesforce partnered with Anthropic to launch "Claudeforce," integrating Anthropic's AI models with Salesforce's customer relationship management capabilities. The company's chief executive said AI models depend on CRM software rather than replacing it. Additionally, net new order value posted its strongest year-over-year growth in four years, seat counts grew across all business segments, and customer churn remained at historic lows.