Salesforce reported adjusted earnings per share of $5.90 for its fiscal second quarter, exceeding analyst expectations of $3.27 by 80.4%, as revenue grew 11% year-over-year to $11.35 billion.
Subscription and support revenue, the company’s primary driver, rose 12% to $10.82 billion, while free cash flow increased 81% to $1.1 billion. Cloud revenue potential reached $33.5 billion, up 14% in constant currency, reflecting strong demand for AI-driven offerings. The company’s Agentforce annual recurring revenue hit $1.5 billion, with agentic workspace units totaling 3.2 billion, a 97% quarter-over-quarter increase.
Non-GAAP operating margin stood at 34.1%, in line with full-year guidance of around 34.3%, while GAAP operating margin was 20.5%, with updated guidance near 20.1%. Gross profit margins over the trailing twelve months reached 77.64%.
For the full fiscal year 2027, Salesforce raised its revenue guidance to between $46.1 billion and $46.4 billion, up $300 million in constant currency terms. The current quarter’s revenue is projected at $11.42 billion to $11.5 billion.
The company accelerated its share repurchase program to $25 billion, targeting at least 14% of outstanding shares at an average price of $176 per share. Salesforce’s market capitalization stands at $168.89 billion, with a P/E ratio of 23.86 and a free cash flow yield of 9%.
Shares closed the regular session at $205.62, down 0.03%, before surging 12.68% in after-hours trading to $231.70. The stock has traded within a 52-week range of $146.32 to $269.11.
CEO Marc Benioff highlighted the company’s AI integration, including its partnership with Anthropic to launch Claudeforce, describing it as a convergence of leading AI and CRM capabilities. CFO Robin Washington emphasized monetization through premium upgrades, while COO Miguel Milano noted that customers starting their agentic journey with Salesforce see average order values double, with potential to nearly quadruple.
