Salesforce Inc. reported quarterly earnings that exceeded expectations on Wednesday, sending shares up 13% in extended trading as investors reacted to strong revenue growth and an upgraded annual outlook.
The San Francisco-based company posted adjusted earnings per share of $5.90 for the second quarter, surpassing the $3.27 consensus estimate by $2.63. Revenue rose 11% year-over-year to $11.3 billion, while annual recurring revenue for Agentforce and Data 360 surged more than 210% to nearly $3.9 billion. Remaining performance obligations increased 14% to $33.5 billion.
Chief Executive Marc Benioff described the quarter as "one of our best quarters ever" in a statement accompanying the results. The company also raised its full-year fiscal 2027 revenue guidance to a range of $46.1 billion to $46.4 billion, up from prior expectations. Adjusted EPS guidance was lifted to between $16.67 and $16.71.
Salesforce shares were up nearly 26% year-to-date ahead of the earnings release and extended those gains to 42% following the report. The stock traded at $231.50 in regular hours, with the after-hours surge bringing it closer to InvestingPro’s fair value estimate of $310.78, implying further upside potential of 34%. The company also highlighted a $25 billion share buyback program and a $5 billion investment in AI startup Anthropic as part of its capital allocation strategy.
The earnings beat follows a first-quarter revenue of $11.1 billion, up about 13% year-over-year, and comes amid broader strength in the enterprise software sector, where companies have benefited from increased demand for cloud-based solutions and artificial intelligence tools.
