Quick Verdict
Salesforce reported fiscal Q2 2027 non-GAAP EPS of $5.90 and revenue of $11.35 billion, exceeding Wall Street expectations. Revenue grew 11% year over year, while AI-related products accelerated. Shares jumped about 12% in after-hours trading after management raised its full-year revenue outlook and highlighted Agentforce and Data 360 demand.
About Salesforce
Salesforce, Inc. (NYSE: CRM) is a San Francisco-headquartered enterprise software company founded in 1999. It provides cloud-based customer relationship management software and a broader platform that connects customer data, applications, workflows, analytics, collaboration tools, and artificial-intelligence agents. Its major offerings include Sales Cloud, Service Cloud, Marketing Cloud, Commerce Cloud, Slack, Tableau, MuleSoft, Data 360, and Agentforce.
In its fiscal 2027 second quarter, Salesforce positioned itself as an “agentic enterprise” platform, combining human employees, AI agents, applications, and customer data on a unified system. The quarter also reflected the contribution of Informatica, which added $456 million to total revenue and $440 million to subscription and support revenue. Salesforce generated a GAAP operating margin of 20.5% and a non-GAAP operating margin of 34.1%, illustrating substantial profitability even as it invests in AI, data infrastructure, and acquisitions.
Top Financial Highlights
- Total revenue reached $11.345 billion, up 11% year over year and 11% in constant currency.
- Subscription and support revenue totaled $10.820 billion, rising 12% year over year; it included a $440 million Informatica contribution.
- Professional services and other revenue was $525 million, down from $546 million a year earlier.
- GAAP net income was $3.526 billion, compared with $1.887 billion in the prior-year quarter.
- GAAP diluted EPS was $4.29, up 119% year over year.
- Non-GAAP diluted EPS was $5.90, up 103% year over year.
- GAAP gross profit was $8.696 billion, equating to a gross margin of approximately 76.6%, versus 78.1% a year earlier.
- GAAP operating margin was 20.5%; non-GAAP operating margin was 34.1%.
- Operating cash flow rose 71% to $1.269 billion.
- Free cash flow increased 81% to approximately $1.1 billion.
- Current remaining performance obligations, or cRPO, reached $33.5 billion, up 14% year over year in both reported and constant-currency terms.
- Remaining performance obligations totaled $66.3 billion, up 11% year over year.
- Agentforce and Data 360 ARR approached $3.9 billion, up more than 210% year over year; Agentforce ARR exceeded $1.5 billion, up more than 240%.
- Cash and cash equivalents stood at $8.310 billion as of July 31, 2026, alongside $3.093 billion in marketable securities.
- Salesforce returned $364 million in dividends during the quarter and continued its $25 billion accelerated share-repurchase program.
- Q3 FY2027 revenue guidance is $11.42 billion–$11.50 billion, with non-GAAP EPS of $3.42–$3.44.
- Full-year FY2027 revenue guidance was raised to $46.1 billion–$46.4 billion, versus the prior $45.9 billion–$46.2 billion range.
Salesforce’s Guidance Includes GAAP and non-GAAP Financial Measures
(Source: Salesforce.com)
- The chart outlines Salesforce’s guidance for Q3 FY27 and the full fiscal year 2027, covering revenue, growth, margins, earnings, cash flow, and capital expenditure. For Q3 FY27, Salesforce expects revenue of USD 11.42 billion to USD 11.50 billion, representing 11% to 12% year-over-year growth. The company expects diluted EPS of USD 1.81 to USD 1.83 on a GAAP basis and USD 3.42 to USD 3.44 on a non-GAAP basis. Current remaining performance obligation growth is projected at approximately 14%.
- For full-year FY27, revenue is expected to reach USD 46.1 billion to USD 46.4 billion, with growth of 11% to 12%. Subscription and support revenue is projected to grow slightly above 12% on a GAAP basis. Salesforce forecasts an operating margin of 20.1% GAAP and 34.3% non-GAAP. Full-year diluted EPS is expected at USD 10.21 to USD 10.25 GAAP and USD 16.67 to USD 16.71 non-GAAP.
- Operating cash flow growth is projected at approximately 4% to 5%, while capital expenditure is expected to represent approximately 1.5% of revenue. The guidance also reflects contributions from Informatica, including slightly above 4 percentage points to Q3 revenue growth and slightly above 3 percentage points to full-year revenue growth.
Beat or Miss?
Salesforce surpassed consensus expectations on adjusted earnings and slightly exceeded expectations on revenue. The unusually large EPS beat was materially supported by gains on strategic investments, which increased GAAP diluted EPS by $2.43 during the quarter.
| Metric | Reported | Difference/Analysis |
| Revenue | $11.35 billion | Above LSEG consensus of $11.32 billion by about $25 million; 11% YoY growth. |
| Non-GAAP EPS | $5.90 | Above LSEG consensus of $3.27 by $2.63, or approximately 80%. |
| GAAP EPS | $4.29 | Up 119% YoY; includes the effect of strategic-investment gains. |
| Q3 FY2027 revenue guidance | $11.42–$11.50 billion | Above the roughly $11.41 billion analyst expectation cited by market coverage. |
| Q3 FY2027 non-GAAP EPS guidance | $3.42–$3.44 | Ahead of the roughly $3.38 consensus expectation. |
| FY2027 revenue guidance | $46.1–$46.4 billion | Raised by $200 million reported and $300 million in constant currency; slightly above the approximately $46.11 billion consensus. |
What Leadership Is Saying
“We just delivered one of our best quarters ever, outperforming across every key metric. AI is delivering value across every layer of our platform.”
— Marc Benioff, Chair and CEO, Salesforce
“AI is amplifying the power, reach, and value of our platform. NNAOV growth is the strongest it’s been in four years, keeping us on track for second-half organic revenue reacceleration.”
— Robin Washington, President and Chief Financial and Operating Officer, Salesforce
Historical Performance
| Category | Q2 FY2027 | Q2 FY2026 | Change (%) |
| Revenue | $11.345 billion | $10.236 billion | 10.80% |
| Net income | $3.526 billion | $1.887 billion | 86.90% |
| Total operating expenses | $6.365 billion | $5.662 billion | 12.40% |
| Operating income | $2.331 billion | $2.332 billion | 0.00% |
| Operating cash flow | $1.269 billion | $0.740 billion | 71.50% |
| Free cash flow | Approximately $1.10 billion | Approximately $0.61 billion | 81% |
The sharp increase in net income primarily reflects a $2.613 billion gain on strategic investments, compared with only $6 million a year earlier. Meanwhile, operating income was broadly flat as higher revenue was offset by higher subscription-service costs, R&D, sales and marketing expense, restructuring charges, and acquisition-related costs.
Historical Performance of Key AI Businesses
Salesforce does not disclose full quarterly revenue, net income, or operating-expense statements for individual competitors in its earnings release. The closest comparable operating metrics are its AI and data product lines, which management identifies as major growth engines.
| Category | Q2 FY2027 | Q2 FY2026 / Prior Period | Change (%) |
| Agentforce and Data 360 ARR | Nearly $3.9 billion | Not disclosed | More than 210% YoY |
| Agentforce ARR | More than $1.5 billion | Not disclosed | More than 240% YoY |
| Agentic Work Units delivered | 3.2 billion in Q2 | Prior-quarter level implied at about 1.6 billion | 97% QoQ |
| Data 360 records ingested | 104 trillion | Approximately 22.9 trillion implied | 355% YoY |
| Zero Copy records ingested | 82 trillion | Approximately 9.9 trillion implied | 731% YoY |
| Slackbot users | Not disclosed | Not disclosed | More than 150% QoQ |
These figures signal that Salesforce’s near-term narrative is centered on monetizing AI through Agentforce, extracting greater value from data infrastructure through Data 360, and embedding AI functionality into Slack and core customer-facing applications.
How the Market Reacted?
Salesforce shares rose about 12% in extended trading after the release, with reports citing an after-hours price near $231.70, compared with a regular-session close of $205.62. Investors responded positively to the adjusted earnings beat, the modest revenue outperformance, stronger operating cash generation, and the increase in FY2027 guidance.
The market reaction also reflected enthusiasm around the company’s AI product momentum, particularly Agentforce’s ARR growth and a strengthened AI strategy.
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