Q4 beat the company’s own targets across the board, but no published market consensus is provided here. Revenue reached $1.8 billion, up 28% year over year, while Cloud revenue accelerated to $1.2 billion and grew 31%; management says both revenue and margins exceeded its guidance. Subscription ARR rose 23% to $6.6 billion and RPO climbed 44% to $4.8 billion, making the underlying recurring-demand signal stronger than the headline revenue alone. (Financial Highlights)
| Metric | Q4 FY26 result | Comparison / expectation |
|---|---|---|
| Total revenue | $1.8B | +28% y/y; ahead of company guidance |
| Cloud revenue | $1.2B | +31% y/y; growth accelerated |
| Subscription ARR | $6.6B | +23% y/y |
| RPO | $4.8B | +44% y/y |
| GAAP operating margin | 12% | +14 percentage points y/y; ahead of expectations |
| Non-GAAP operating margin | 36% | +12 percentage points y/y; ahead of expectations |
| Free cash flow | $475M | +32% y/y |
| FY27 total revenue growth guide | 13% | Below Q4’s 28% growth rate |
| FY27 Subscription ARR growth guide | 18% | Below Q4’s 23% growth rate |
| FY27 Cloud revenue growth guide | 25.5% | Below Q4’s 31% growth rate |
| FY27 Data Center revenue growth guide | -17% | Decline expected after FY26 pull-forward |
The quality of growth was better than the headline suggests. Cloud growth reached 31%, RPO grew 44%, customers above $3 million in ARR increased more than 50%, and customers above $5 million grew more than 70%. Rovo activity also expanded, with assisted actions up more than 50% sequentially. These figures point to deeper enterprise adoption and broader platform usage rather than growth driven only by new customers. (Enterprise; AI; Financial Highlights)
Profitability was a genuine upside, though part of the margin step-up reflects cost control and temporary revenue timing. GAAP operating margin reached 12%, versus negative territory a year earlier, while free cash flow was $475 million despite roughly $70 million of restructuring-related severance payments. However, Data Center revenue benefited from upfront term-license recognition after the planned March 2029 end-of-life announcement pulled purchasing forward. That makes the Q4 revenue beat less fully repeatable. (Financial Highlights; Cash Flow statement)
The forward setup is more cautious than the Q4 result. Management expects FY27 revenue growth to slow to approximately 13%, Subscription ARR growth to 18%, and Cloud growth to 25.5%; Data Center revenue is expected to fall 17% as the pull-forward reverses and customers migrate to Cloud. GAAP operating margin is guided to 4.5%, versus 12% in Q4, although management says the underlying non-GAAP margin should improve after adjusting for the temporary Data Center benefit and a planned shift toward more cash compensation. With no external consensus supplied, the clean read is a strong quarter versus company targets, offset by a materially slower and more complicated FY27 outlook. (FY27 Outlook)
Read the original 8-K on SEC EDGAR ↗