Salesforce Inc reported fiscal second-quarter 2027 results that exceeded analyst forecasts, driven by strong demand for artificial intelligence tools and sustained enterprise spending. Adjusted earnings per share reached $5.90, surpassing the $3.27 consensus estimate by more than 80%, while revenue grew 11% year-over-year to $11.35 billion, narrowly outpacing the $11.32 billion estimate.
Free cash flow surged 81% to $1.1 billion, compared with the $643 million estimate, as the company maintained non-GAAP operating margins at 34.3%. Constant-currency remaining performance obligations (cRPO) grew 14%, the fastest pace in four years and well above the 10% estimate, reflecting renewed momentum in customer commitments.
The company raised its full-year adjusted EPS guidance by nearly $2.60 to a range of $16.67–$16.71, signaling confidence in sustained demand. Organic subscription revenue growth was reported at approximately 6% in constant currency for the quarter, trailing TD Cowen's estimate of 7%, though the company guided to 7.1% for the current quarter and 8.4% for the fourth quarter.
AI-related revenue streams continued to expand rapidly. Agentforce annual recurring revenue reached $1.5 billion, up more than 240% year-over-year, while combined AI and data offerings including Data 360 and Informatica totaled $3.9 billion, a 210% increase. Over half of premium SKU bookings now originate from existing customers expanding commitments, according to the company.
Salesforce also highlighted new AI integrations, including Claudeforce, a plug-in developed with Anthropic that combines the reasoning capabilities of Claude with Salesforce's enterprise data and workflows. The company noted a 15–17% increase in ramped account executives entering fiscal 2027, supporting future growth expectations.
A $5.6 billion contract with the U.S. Army, recognized on a milestone basis through fiscal 2028, was cited as a long-term revenue driver. The company also guided to 14% cRPO growth for the third quarter, one percentage point above Street expectations.
Analysts responded positively, with Jefferies and TD Cowen both raising price targets to $300 and $280, respectively. TD Cowen described the Anthropic partnership as a potential "trajectory changer" for 2027. Other firms, including Mizuho, Cantor Fitzgerald, and Wells Fargo, also adjusted their targets, reflecting a broad upgrade in sentiment.
Looking ahead, Salesforce pointed to its Dreamforce conference as a key near-term catalyst, where it plans to unveil Agentforce v4, a new IT Service Management platform, and additional details on Claudeforce. The pending acquisitions of Contentful and Fin are expected to contribute incrementally to cRPO growth starting in the third quarter.
