TLDR
- Salesforce posted adjusted EPS of $5.90, blowing past the $3.27 estimate by 80%
- Revenue hit $11.35 billion, up 11% year over year, in line with forecasts
- Free cash flow surged 81% to $1.1 billion
- CRM stock jumped 12.68% in after-hours trading to $231.70
- Full-year revenue guidance raised to $46.1 billion to $46.4 billion
Salesforce reported fiscal Q2 2027 results after the bell on Wednesday, posting earnings that came in well above what Wall Street expected. The stock jumped 12.68% in after-hours trading to $231.70, up from its regular session close of $205.62.
Adjusted EPS came in at $5.90, versus the analyst estimate of $3.27. That is an 80% beat, which is a large surprise for a company of this size.
Revenue for the quarter was $11.35 billion, up 11% year over year and matching the consensus forecast of $11.33 billion. This was a record quarterly revenue figure for the company.
SALESFORCE $CRM Q2’27 EARNINGS HIGHLIGHTS
🔹 Revenue: $11.3B (Est. $11.32B) 🟡; +11% YoY
🔹 Adj. EPS: $5.90 (Est. $3.27) 🟢; +103% YoY
🔹 GAAP EPS: $4.29; +119% YoY
🔹 cRPO: $33.5B; +14% YoY CCRaises FY27 Guide:
🔹 Revenue: $46.1B-$46.4B (Est. $46.11B) 🟡
🔹 Adj. EPS:… pic.twitter.com/7qBRmZeePh— Wall St Engine (@wallstengine) August 26, 2026
Subscription and support revenue, the core of the business, rose 12% to $10.82 billion. Cloud revenue potential, which tracks future contracted business, reached $33.5 billion, up 14% in constant currency.
Free cash flow climbed 81% year over year to $1.1 billion. Operating cash flow rose 71% to $1.3 billion. Non-GAAP operating margin came in at 34.1%.
AI Products Gaining Traction
Agentforce annual recurring revenue surpassed $1.5 billion, up more than 240% year over year. Combined with Data 360, AI-related ARR reached nearly $3.9 billion, up more than 210%.
Salesforce delivered 3.2 billion Agentic Work Units in Q2, up 97% from the prior quarter. Slackbot users grew more than 150% quarter over quarter, and Slack posted its strongest net-new annual order value growth since the acquisition.
CEO Marc Benioff highlighted a new product called Claudeforce, built in partnership with Anthropic. “This is the number one AI in the world, Anthropic, and the number one CRM, Salesforce, coming together for the first time,” he said.
Guidance and Outlook
Salesforce raised its full-year FY27 revenue guidance to $46.1 billion to $46.4 billion, up $300 million from the prior outlook.
For Q3, the company guided revenue of $11.42 billion to $11.5 billion, representing 11% to 12% year-over-year growth. Q3 current remaining performance obligations growth is expected to hold around 14%.
The company kept its full-year non-GAAP operating margin guidance at approximately 34.3%. Full-year operating and free cash flow growth is expected at roughly 4% to 5%.
Salesforce is also executing a $25 billion accelerated share repurchase program, targeting at least 14% of outstanding stock at an average price of $176 per share.
Total remaining performance obligations reached $66.3 billion, up 11% year over year.
Wall Street currently holds a Moderate Buy consensus on CRM, based on 25 buys, nine holds, and two sells over the past three months. The average price target sits at $238.94.
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