Salesforce Inc. surged more than 11% on Thursday after reporting quarterly earnings that far exceeded expectations and raising its full-year revenue and profit guidance.
The San Francisco-based company posted adjusted earnings per share of $5.90 for the quarter, well above the $3.27 expected by analysts. Revenue climbed 11% year-over-year to $11.35 billion, narrowly beating the $11.33 billion estimate. Adjusted operating margin reached 34.1%, while operating cash flow jumped 71% to $1.3 billion.
Annual recurring revenue from AI and data products is nearing $4 billion, driven by demand for offerings including Agentforce and Data 360. Agentforce alone generated ARR of more than $1.5 billion, up over 240% from a year ago. Current remaining performance obligations grew 14% to $33.5 billion.
For the full fiscal year ending January 2027, Salesforce raised its revenue guidance to a range of $46.1 billion to $46.4 billion, up from the prior $45.9 billion to $46.2 billion. The midpoint of $46.25 billion exceeds the $46.11 billion consensus. Adjusted EPS guidance was lifted to $16.67–$16.71 from $14.06–$14.12, also surpassing forecasts.
Third-quarter revenue is expected to reach $11.42 billion to $11.5 billion, while adjusted EPS is projected at $3.42–$3.44, both above Wall Street estimates.
Salesforce also announced an expanded partnership with AI startup Anthropic to integrate Anthropic’s plug-ins into Salesforce’s business tools under a system called Claudeforce. Pilot access is available now, with a beta version slated for next month.
CEO Marc Benioff said the company delivered one of its strongest quarters, attributing the performance to strong demand for AI and data products. Analysts noted the results contrast with slower growth trends reported by some front-office software peers.
Shares of Salesforce rose more than 11% in after-hours trading following the report.
