Earnings Highlights
Salesforce (NYSE: CRM) posted a quarterly adjusted earnings per share of $5.90, well above Wall Street’s estimate of $3.27. Revenue for the quarter reached $11.35 billion, an 11% year‑over‑year increase and marginally above the consensus forecast of $11.33 billion. CEO Marc Benioff said the company delivered “one of our best quarters ever, outperforming across every key metric,” emphasizing that AI is generating value across the platform and that annual recurring revenue (ARR) is poised to exceed $4 billion.
Guidance Update
For fiscal 2027, Salesforce lifted its full‑year revenue outlook to a range of $46.1 billion to $46.4 billion, with a midpoint of $46.25 billion, overtaking the prior range of $45.9 billion to $46.2 billion and the analyst consensus of $46.11 billion. Adjusted full‑year EPS guidance was increased to $16.67‑$16.71, up from $14.06‑$14.12, and above the consensus estimate of $14.16.
For the upcoming third quarter, the company projects revenue of $11.42 billion to $11.5 billion, with a midpoint of $11.46 billion, slightly ahead of the consensus of $11.42 billion. Third‑quarter adjusted EPS is expected to be $3.42‑$3.44, versus the analyst estimate of $3.39.
Financial Metrics
The quarter’s adjusted operating margin stood at 34.1%. Operating cash flow surged 71% to $1.3 billion. Agentforce and Data 360 ARR climbed to nearly $3.9 billion, representing a 210%+ year‑over‑year increase, while Agentforce‑only ARR topped $1.5 billion, up 240%+ YoY. The company’s remaining performance obligation grew 14% to $33.5 billion.
Analysts at Raymond James noted that the results suggest growth metrics could re‑accelerate in the second half of fiscal 2027, contrasting with peers reporting extended sales cycles through 2026. Bank of America analyst Tal Liani described the overall picture as solid, adding that the quarter “challenges the view that AI will displace Salesforce” and shifts the debate toward monetizing AI adoption.
AI Partnership Expansion
Salesforce disclosed an expanded partnership with AI startup Anthropic to develop a joint offering called “Claudeforce.” The system will integrate Anthropic’s advanced plug‑ins with Salesforce’s business tools. Select pilot customers can already access the solution, and a beta version is planned for release next month.
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