Salesforce Q2 Earnings Top Estimates, Raise FY Guidance
Salesforce Q2 earnings beat consensus and raised FY27 revenue guidance, creating a near-term catalyst for traders focused on the stock's technicals.
KEY TAKEAWAYS
- Form 8-K showed Q2 revenue $11.3 billion and non-GAAP EPS $5.90, beating consensus.
- Salesforce raised FY27 revenue guidance to $46.1-$46.4 billion and kept a 34.3% non-GAAP margin target.
- Agentforce ARR reached $1.2 billion; company continued a $25.0 billion ASR and returned $364 million in dividends.
HIGH POTENTIAL TRADES SENT DIRECTLY TO YOUR INBOX
Add your email to receive our free daily newsletter. No spam, unsubscribe anytime.
Salesforce (CRM) reported second-quarter fiscal 2027 earnings after the U.S. market close on Aug. 26, 2026, exceeding consensus expectations. The company raised its full-year revenue outlook, providing a near-term technical and fundamental catalyst for CRM stock.
Q2 Results and Financial Metrics
Salesforce disclosed results for the quarter ended July 31, 2026, in a Form 8-K filing. Revenue reached $11.3 billion, up 11.0% year over year. Subscription and support revenue rose 12.0% to $10.8 billion, including $440 million from Informatica.
GAAP diluted earnings per share (EPS) jumped 119.0% to $4.29, while non-GAAP diluted EPS increased 103.0% to $5.90. The company noted that non-GAAP results benefited from $2.6 billion in gains on strategic investments. GAAP operating margin was 20.5%, and non-GAAP operating margin was 34.1%.
Operating cash flow grew 71.0% to $1.3 billion, and free cash flow rose 81.0% to $1.1 billion. Salesforce returned $364 million in dividends and continued its $25 billion accelerated share-repurchase program.
Guidance and Market Context
Before the release, Salesforce guided Q2 revenue between $11.27 billion and $11.35 billion, with non-GAAP diluted EPS of $3.25 to $3.27 and GAAP diluted EPS of $1.74 to $1.76. Consensus estimates clustered near $11.32–$11.33 billion in revenue and $3.27 non-GAAP EPS, implying roughly 10–11% revenue growth and about 12% EPS growth compared with the prior-year quarter, which had revenue of $10.24 billion and non-GAAP EPS of $2.91.
The filing raised full-year fiscal 2027 revenue guidance to $46.1 billion–$46.4 billion and maintained a non-GAAP operating margin target of 34.3%.
Technical commentary ahead of the report described CRM stock as trading near its 200-day moving average after a more than 20% decline from prior highs, marking the quarter as a key catalyst. Management highlighted Agentforce, Salesforce’s AI platform, with annual recurring revenue (ARR) of $1.2 billion, up 205% year over year. Organic revenue growth excluding Informatica is expected to slow to about 6–7%, while new net annualized order value has outpaced existing-business growth for four consecutive quarters.
The stronger-than-expected quarter, upward revision to revenue guidance, and ongoing share repurchases reset near-term expectations for investors and traders following CRM stock.
