TLDR
- Salesforce CRM rallies after Q2 results show strong AI growth and higher guidance.
- Agentforce ARR jumps over 240% as Salesforce expands enterprise AI adoption.
- Salesforce raises FY27 revenue outlook after delivering record quarterly results.
- Strong margins and cash flow growth support Salesforce’s latest market rally.
- Data 360 growth accelerates as Salesforce strengthens its AI platform strategy.
Salesforce Inc. (CRM) stock jumped after hours as quarterly results showed stronger demand for artificial intelligence products and services. The company reported record second quarter results with revenue growth, higher margins, and expanding enterprise adoption. Salesforce raised its fiscal 2027 revenue outlook after strong performance across its platform.
Agentforce Growth Lifts Salesforce Platform Performance
Salesforce expanded its Agentforce business as annual recurring revenue exceeded $1.5 billion during the second quarter. The figure increased more than 240% year over year, reflecting stronger demand for automated business solutions. Agentforce and Data 360 annual recurring revenue reached nearly $3.9 billion after rapid expansion.
The company delivered 7 billion Agentic Work Units across Agentforce and Slack since launch. It processed 3.2 billion units during the second quarter, showing increased platform activity. Slack reported stronger growth as Slackbot users increased more than 150% quarter over quarter.
Salesforce recorded higher data usage as Data 360 processed 104 trillion records during the quarter. The figure represented a 355% year over year increase from broader customer adoption. The platform also handled 22 terabytes of unstructured data during the period.
Salesforce Reports Strong Financial Results and Raised Outlook
Salesforce generated $11.3 billion in second quarter revenue, marking an 11% year over year rise. Subscription and support revenue reached $10.8 billion after including the Informatica contribution. The company also posted stronger profitability with a 20.5% GAAP operating margin.
The company reported diluted earnings per share of $4.29, increasing 119% year over year. Non-GAAP diluted earnings per share reached $5.90, rising 103% from the previous year. Operating cash flow increased 71% to $1.3 billion during the quarter.
Salesforce raised its fiscal 2027 revenue forecast to between $46.1 billion and $46.4 billion. The updated guidance represents annual growth of 11% to 12% for the business. The company expects subscription and support revenue growth to remain above 12%.
Salesforce Expands AI Strategy Through New Business Initiatives
Salesforce continues strengthening its enterprise platform through new artificial intelligence capabilities and acquisitions. The company expects Contentful and Fin transactions to close during the third quarter. These additions will support broader platform expansion and customer service improvements.
The company maintained its fiscal 2027 non-GAAP operating margin target at 34.3%. It also expects free cash flow growth to remain between 4% and 5% year over year. Salesforce continues executing its $25 billion accelerated share repurchase program.
Salesforce remains focused on improving business workflows through data management and automation tools. The latest results highlight continued demand for enterprise technology solutions. The company’s quarterly performance shows stronger momentum across its products and services.
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