Salesforce Inc. announced a strategic shift in its financial reporting, consolidating its AI-related revenue into two primary categories beginning in fiscal 2027. The move aims to provide investors with a clearer view of how its artificial intelligence initiatives are driving growth. Shares responded positively, closing Friday's session at $183.82, up 4.13%.
New Revenue Structure
Starting in fiscal 2027, Salesforce will report revenue under two main buckets: Agentforce Apps and Data 360, Platform & Other. Agentforce Apps encompasses Salesforce's suite of AI-powered agents designed to automate business tasks with minimal human intervention. Data 360 serves as the underlying data platform that supplies these agents with the contextual information they need to function effectively.
The company has also released recast financial data for fiscal 2025 and 2026 to facilitate year-over-year comparisons under the new structure. For the recast fiscal 2026, Agentforce Apps generated $26.7 billion in subscription and support revenue, while Data 360, Platform & Other contributed $12.7 billion. On a constant-currency basis, Agentforce Apps grew 7%, and Data 360, Platform & Other posted 15% growth.
Market Context
The timing of this announcement comes amid heightened scrutiny of enterprise software companies' AI capabilities. A recent Reuters report highlighted concerns that investors are no longer satisfied with broad AI promises but demand tangible revenue contributions. Salesforce, along with peers like ServiceNow and Workday, faces questions about whether AI can drive new sales or merely cannibalize demand for existing products.
On Friday, Salesforce's stock performance outperformed ServiceNow, which rose 3.23%, but lagged Oracle's 6.47% gain. This suggests broader buying across major software stocks rather than a company-specific catalyst.
Executive Commentary
Salesforce Chair and CEO Marc Benioff previously emphasized the scale of Agentforce's operations, noting that the platform has processed nearly 20 trillion tokens and output over 2.4 billion agentic work units. President and CFO Robin Washington indicated that the company anticipates organic revenue growth to accelerate in the second half of fiscal 2027.
Investor Implications
Analysts at Evercore ISI, led by Kirk Materne, noted that the new structure simplifies tracking by focusing on just two key segments. However, there is a catch: Salesforce will continue to provide constant-currency growth rates based on its old product lineup through fiscal 2027. Starting fiscal 2028, the company will fully transition to the new structure, potentially reducing visibility into legacy lines such as marketing, commerce, MuleSoft, and Tableau.
The company's risk disclosures highlight challenges associated with AI rollouts, regulatory changes, and the rapid pace of innovation in enterprise cloud computing. As software customers evaluate budgets for AI agents, data tools, and existing cloud software, Salesforce's new reporting framework sets the stage for a straightforward test in upcoming earnings: whether Agentforce Apps and Data 360 can deliver the growth that supports the company's AI narrative.
