Overview
Salesforce
CRM · NYSEQ2 FY2027Software · Cloud CRM & Enterprise AI
Since the Report + 17.5%
Revenue grew 11.0% year over year, EPS beat the estimate by 80.0%; the stock rose 14.0% in its first reaction.
- RevenueQ2
- $11.35B
- ▲ 11% YoY · 0.3% Above Estimate
- Reported Adjusted EPS
- $5.90
- Includes $2.53 Anthropic Gain
Verdict
BUYSalesforce edged past expectations with $11.35 billion in fiscal second-quarter revenue; the headline adjusted EPS leapt to $5.90, but $2.53 of that was a one-time gain on its Anthropic stake. Operationally, current remaining performance obligation (cRPO) rose 14%, Agentforce revenue grew 240%, the full-year outlook was raised, and the company unveiled a 'Claudeforce' partnership with Anthropic. Down 17% over the past year, the stock jumped 14% after hours; durability hinges on growth actually accelerating beyond the one-off gain.
Close on Report DayAug 26
$205.62▲ 14.0%Report-Day Move
- Market Cap(Today)
- ≈ $199 B
- 1Y Return(At Report)
- − 17%
- P/E(At Today's Price · $10.79 · Trailing 12M)
- 22.4
- Net Margin(Trailing 12M)
- 22.0%
Earnings Summary
In 30 Seconds- Revenue rose 11% to $11.35B; operating EPS excluding the Anthropic gain was $3.37, 3.1% above the estimate.
- cRPO grew 14% in constant currency and the full-year revenue outlook was raised to $46.1-46.4B.
- Entering the print with low expectations, the stock jumped 14% after hours on the Claudeforce deal and the $25B buyback.
The Numbers
Operating EPS (Ex-Gain)
$3.37
Estimate $3.27 · 3.1% Beat
CRPO
$33.5B
▲ 14% YoY · Constant Currency
Agentforce ARR
$1.5B
▲ 240% YoY
After-Hours Reaction
▲ 14%
After Hours · Anthropic Partnership
Quarterly Revenue ($ Billion)
10.24
Q2 26 · $10.2 B
10.26
Q3 26 · $10.3 B · QoQ + 0.2%
11.18
Q4 26 · $11.2 B · QoQ + 9.0%
11.11
Q1 27 · $11.1 B · QoQ − 0.6%
11.35
Q2 27 · $11.4 B · QoQ + 2.2% · YoY + 10.9%
11.42–11.50
Q3 27E · 11.42–11.50 · QoQ + 1.0% · YoY + 11.7%
- Q2 26
- Q3 26
- Q4 26
- Q1 27
- Q2 27
- Q3 27E
Q3 FY27 Company Guidance
- Full-Year Revenue (FY27)46.1 – 46.4 billion46.1 billion46.4 billion
Midpoint $46.25B · ~0.4% Above PriorRaised 0.4% ▲
- Q3 Revenue11.42 – 11.50 billion11.42 billion11.50 billion
Midpoint $11.46B · Constant Currency~11% YoY Growth ▲
- cRPO Growth (Q3)14%
Constant Currency · in Line with Q214% · Momentum Held ▲
- Non-GAAP Operating Margin34.3%
FY26 ~34.0%0.3 pt Expansion ▲
How to Read the Chart
The blue band is the company's low-high range; its length shows how much room the company left itself. The black triangle and the line beneath it mark where the market expected, and the notch in the band is the range's midpoint. The triangle appears only where a market expectation is known. When the company gave a single number rather than a range and no market expectation is known, that row gets no band at all: there is no length to measure and no position to compare. Axis is ±0.4% around the midpoint.
Segment and KPI Data
Revenue by Segment
- Agentforce Apps$7.19 BShare 63.5%▲ 7.6% YoY
Includes Sales, Service, Marketing, Commerce and Slack.
- Data 360, Headless Platform and Other$3.62 BShare 31.9%▲ 20.3% YoY
Includes Informatica, MuleSoft and Tableau.
- Professional Services and Other$525 MShare 4.6%▼ 3.8% YoY
Key Metrics
Remaining Performance Obligation (RPO)
$66.3 B
▲ 11.0% YoYPress Release
Operating Cash Flow
$1.27 B
▲ 71.0% YoYPress Release
Free Cash Flow
$1.10 B
▲ 81.0% YoYPress Release
Dividends Paid
$364 M
Press Release
Agentic Work Units (AWUs, Quarter)
3.20 B units
Press Release
Data 360 Records Ingested
104 T records
▲ 355.0% YoYPress Release
Shares are computed over the segment total: $11.3 B. Source: Press Release.
Metrics come only from the company's own filings; each one names the document it was taken from.
“AI is now delivering value across every layer of our platform, and demand for our AI and data products is extraordinary. We are opening the door to the era of digital labor.”
- Agentforce ARR Up 240%
- Extraordinary AI Demand
- Anthropic Partnership Expanded
Summary and Review
Summary
In the quarter ended July 31, 2026, Salesforce lifted revenue to $11.35 billion, up 11% year over year. That was 0.3% ahead of the $11.32 billion consensus and included a $456 million Informatica contribution. Headline adjusted EPS leapt to $5.90. But $2.53 of that was a one-time investment gain on its Anthropic stake. Strip it out and operating EPS was about $3.37, 3.1% above the $3.27 estimate. Current remaining performance obligation (cRPO) reached $33.5 billion, up 14% in constant currency.
The stock entered the print down 17% over the past year, as investors feared AI would erode Salesforce's per-seat licensing model. That low bar amplified the good news: shares jumped 14% after hours. The beat, the raised full-year outlook and the 14% cRPO acceleration were evidence that growth is not stalling. A $25 billion accelerated buyback and the same-day 'Claudeforce' partnership added fuel. The Anthropic gain that doubled headline EPS does not recur. The question: can core growth durably reaccelerate?
We score the quarter 78, grading the earnings, not the stock. Operations are solid: cRPO up 14%, Agentforce ARR up 240%, free cash flow up 81%, and guidance was raised. Two caveats keep it below 90. First, core growth has matured to 11%, and half the headline profit was a one-time gain; execution is less sharp than it looks. Second, Agentforce is still a small share of total revenue. For the AI story to carry the valuation, monetization must accelerate.
Full Review
Half the headline profit is one-time.
The most easily misread line this quarter is adjusted EPS: at $5.90, it more than doubled year over year. But $2.53 of that came from a one-time gain as Salesforce's venture arm marked up its stake in Anthropic. Strip that out and operating EPS was roughly $3.37 — just 3.1% above the $3.27 consensus, a modest but real beat. GAAP EPS rose to $4.29 for the same reason. The takeaway for investors: the company did operationally beat expectations, but most of the 'doubled' headline is a non-recurring item that will not repeat.
cRPO rose 14%, strengthening the demand signal.
In a software company, the best forward indicator is current remaining performance obligation (cRPO): revenue already contracted to be recognized over the next twelve months. This quarter cRPO reached $33.5 billion, up 14% in constant currency — faster than the 11% current revenue growth. That gap matters, because the bear case on Salesforce rested on ever-slowing growth; cRPO outpacing revenue undercuts it and points to solid demand. Management also guided to roughly 14% cRPO growth for Q3, signaling it expects the momentum to hold. This was the most durable underpinning of the stock's after-hours pop. Third-quarter revenue guidance is $11.42–11.50 billion, and the full-year revenue target was raised to $46.1–46.4 billion.
Agentforce fired the AI engine.
The company's AI-agent platform, Agentforce, sits at the center of the growth narrative. Agentforce ARR topped $1.5 billion, up 240% year over year; combined with Data 360, AI and data revenue reached $3.9 billion (up 210%). Usage is accelerating too: 7 billion 'agentic work units' delivered to date, 3.2 billion in this quarter alone, up 97% sequentially. These figures suggest Salesforce is starting to turn AI from a demo into a billable product. Still, within $11.35 billion of total revenue this line remains small; the real test is whether that 240% pace can hold as the base grows.
The Anthropic partnership deepened: Claudeforce.
On earnings day Salesforce did more than report numbers; it expanded the partnership it struck with Anthropic in June and unveiled the 'Claudeforce' integration. It lets sales teams reach Salesforce data directly from inside Anthropic's Claude assistant. It launches with 37 pre-built sales skills (composing emails, updating records), with broader links planned across Claude, Salesforce and Slack. That same Anthropic investment is also the source of the $2.53 gain that inflated this quarter's headline profit. The two companies' convergence gives Salesforce both a strong AI-model partner and an appreciating asset on its books. How much the partnership converts into revenue, however, is not yet measurable; its same-day unveiling was one of the factors behind the 14% after-hours jump.
Core growth is mature; valuation is moderate.
There is a measured side to the picture. The 11% revenue growth is now a mature pace for a company that once grew 20-30%, and much of it comes from price increases and acquisitions like Informatica. The stock appears to have priced this in: down 17% over the past year, it entered the print with low expectations. The 14% after-hours pop closed part of the 18% upside to the analysts' average $242.64 target. The $25 billion accelerated buyback supports per-share metrics by shrinking the share count. Net-net, the valuation is not stretched; but a re-rating requires AI revenue to visibly lift core growth. Free cash flow also rose 81% year over year to $1.1 billion. In December, watch two lines: whether cRPO growth holds at 14%, and whether Agentforce's 240% pace survives as the base grows.
Looking Ahead
Strengths and Risks
6 Strengths · 6 RisksStrengths
6- cRPO reached $33.5 billion, up 14% in constant currencyOutpacing revenue growth signals solid demand.
- Agentforce ARR topped $1.5 billion (up 240%), and combined AI revenue with Data 360 reached $3.9 billion (up 210%).
- Management raised the full-year revenue outlook to $46.1–46.4 billion.
- Free cash flow rose 81% year over year to $1.1 billionOperating cash flow was up 71%.
- The Anthropic partnership expandedThe 'Claudeforce' integration launched with 37 pre-built sales skills.
- A $25 billion accelerated buyback supports per-share metrics by reducing the share count.
Risks
6- Of the $5.90 headline adjusted EPS, $2.53 came from a one-time Anthropic investment gain that will not recur.
- Core revenue growth has matured to 11%, with much of it from price increases and acquisitions.
- Exciting as Agentforce is, its share of total revenue is still smallMonetization must accelerate.
- The risk that AI erodes the per-seat licensing model remains investors' central concern.
- The stock is down 17% over the past yearMomentum is fragile and sensitive to expectations.
- The Informatica integration and pending Contentful and Fin acquisitions carry digestion risk.
What to Watch
5- December 2026 - fiscal Q3 resultsA test of the $11.42–11.50 billion revenue and 14% cRPO growth guide.
- October 2026 - final settlement of the $25 billion accelerated share repurchase.
- Whether Agentforce and Data 360 monetization holds its pace as the base grows.
- Whether the Claudeforce and Anthropic integrations convert into measurable revenue.
- The close of the pending Contentful and Fin acquisitions and their contribution to guidance.
Upcoming Earnings
To Understand This