Salesforce announced its financial results for the second quarter of fiscal 2027, covering the period ending July 31, 2026. The company recorded revenue of $11.35 billion, an 11% increase year-over-year, which matched the growth rate on a constant currency basis and surpassed the consensus estimate of $11.32 billion. Subscription and support revenue reached $10.82 billion, up 12% year-over-year, with Informatica contributing $440 million to this segment and $456 million to the overall revenue figure.

The company's GAAP operating margin stood at 20.5%, while the non-GAAP operating margin was 34.1%. GAAP diluted earnings per share came in at $4.29, a 119% jump from the prior year, whereas non-GAAP diluted EPS was $5.90, representing a 103% increase and significantly beating the Street's expectation of approximately $3.27. Operating cash flow for the quarter totaled $1.3 billion, up 71%, and free cash flow reached $1.1 billion, an 81% rise that exceeded the StreetAccount forecast of around $643 million.

Net income for the quarter was $3.526 billion, compared to $1.887 billion in the same period last year. The company recognized a net gain of roughly $2.613 billion from strategic investments during the quarter, primarily related to its equity stake in Anthropic, which was valued at $965 billion following a financing round in May. According to the company, this gain contributed approximately $2.43 to GAAP diluted EPS, based on a 23.5% US tax rate, and $2.53 to non-GAAP diluted EPS, using a 20.5% non-GAAP tax rate. Excluding the investment gains, non-GAAP EPS would have been approximately $3.37. Alphabet and Microsoft have recently reported similar paper gains from their own stakes in Anthropic.

Founded by Marc Benioff in San Francisco in 1999, Salesforce began as a subscription-based cloud software company, moving sales, service, marketing, and commerce processes into the browser to help businesses avoid building their own data centers. Over two decades later, it has evolved its customer relationship management into a stackable platform: sales and service applications form the base, Slack serves as the conversational interface, Tableau and MuleSoft handle analytics and system integration respectively, and Informatica, consolidated in the fourth quarter of fiscal 2026, adds data governance and integration. Agentforce and Data 360 connect AI agents and customer data to the same permission and metadata framework. The company now positions itself as an "agentic enterprise" software provider, allowing employees, agents, and business systems to manage leads, tickets, and decisions on a unified platform.

As of January 2026, Salesforce had approximately 83,300 full-time employees and reported fiscal 2026 revenue of $41.5 billion. The company's market position remains dominant by revenue share. According to the IDC Worldwide Semiannual Software Tracker from April 2026, Salesforce held 20.0% of global CRM software revenue in 2025, ranking first for the 13th consecutive year. No other vendor exceeded 5% during that period, with Oracle at approximately 4.1% and Microsoft between 4.0% and 5.2%. By segment, Salesforce ranked first in sales applications for the 14th straight year, customer service for the 13th year, and marketing applications for the 7th year. In IDC's newly established "agent building and deployment" category, Salesforce ranked second with a 17.5% share, showing the largest increase from 6.9% in 2024. The company serves roughly 150,000 customers across the Americas, Europe, and Asia-Pacific, competing with Microsoft Dynamics, Oracle, SAP, HubSpot, and ServiceNow in service process management.

These quarterly figures should be viewed within this structural context: of the $11.3 billion in revenue, subscriptions still account for over 90%, and AI-related annual recurring revenue approaches $3.9 billion. However, the core revenue continues to come from traditional seats and data platforms rather than standalone chatbots. Agentforce annual recurring revenue exceeded $1.5 billion, and current remaining performance obligations accelerated to $33.5 billion, growing 14% both year-over-year and on a constant currency basis, up from 13% in the prior quarter. Total remaining performance obligations reached $66.3 billion, an 11% year-over-year increase. Combined, Agentforce and Data 360 generated nearly $3.9 billion in annual recurring revenue, up over 210% year-over-year, with Agentforce alone exceeding $1.5 billion, a growth rate of over 240%. Starting this quarter, Slackbot and Headless 360 are included in this metric. The company delivered 3.2 billion Agentforce work units during the quarter, a 97% sequential increase, bringing the cumulative total to 7 billion. Customer accounts with deployed agents grew 70% sequentially, and bookings for Agentforce One Edition and Agentforce for Apps more than doubled quarter-over-quarter. Slackbot active users surpassed 1 million, growing over 150% sequentially. Data 360 ingested 104 trillion records in the quarter, a 355% year-over-year increase, including 82 trillion zero-copy records, up 731%, and processed 22TB of unstructured data. Slack recorded its fastest quarterly net new annualized order growth since acquisition.

Chief Executive Officer Marc Benioff stated in the release that AI is permeating every layer of the platform and that annual recurring revenue from AI and data products is "about to cross $4 billion." Co-President and Chief Financial Officer Robin Washington noted on the earnings call that subscription and support revenue growth was driven by Slack and Agentforce, though license revenue remains volatile. Benioff also mentioned on the call that nine of the top ten AI companies use Salesforce and Slack, with related spending up 435% year-over-year.

Alongside the earnings release, the company announced the launch of Claudeforce with Anthropic, integrating Claude into Salesforce data, applications, and workflows. The company also confirmed that definitive agreements to acquire Contentful and Fin were signed in June, with both transactions now expected to close during the third fiscal quarter. The full-year revenue guidance was raised to $46.1 billion to $46.4 billion, representing 11%–12% year-over-year growth, or 11% on a constant currency basis, with Informatica contributing just over 3 percentage points. Compared to the prior guidance of $45.9 billion to $46.2 billion, this represents an increase of $200 million on a reported basis and $300 million on a constant currency basis, comprised of a $100 million organic uplift, $200 million from Contentful and Fin, and a $100 million currency headwind. Full-year subscription and support revenue growth guidance is slightly above 12% (slightly below 12% on a constant currency basis). Non-GAAP operating margin guidance remains at approximately 34.3%, while GAAP operating margin guidance is adjusted to approximately 20.1%. Full-year non-GAAP diluted EPS guidance was raised to $16.67–$16.71, up from the previous range of $14.06–$14.12.

For the third fiscal quarter, the company guided revenue of $11.42 billion to $11.50 billion, reflecting 11%–12% growth on both a reported and constant currency basis, with Informatica contributing slightly over 4 percentage points. Non-GAAP EPS is expected to be $3.42–$3.44, compared to Street expectations of approximately $11.41 billion in revenue and $3.38 in EPS. The company expects cRPO growth of approximately 14% for the third quarter, excluding the two pending acquisitions. Full-year operating cash flow and free cash flow growth guidance remains at approximately 4%–5%. Under the $25 billion accelerated share repurchase program, 103 million shares have been delivered, with final settlement expected in October 2026. The company also paid dividends of $364 million during the quarter.

By geography, revenue in the Americas reached $7.404 billion, Europe contributed $2.764 billion, and Asia-Pacific generated $1.168 billion. The stock closed at $205.62 and rose approximately 12%–13% in after-hours trading. Whether investment gains will continue in subsequent quarters, the timing of the Contentful and Fin closings, and organic growth excluding acquisitions and investment gains will depend on the actual consolidation results in the third fiscal quarter.