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Salesforce reported Q2 FY2027 revenue of $11.35 billion, ahead of the $11.33 billion consensus. Its non-GAAP diluted earnings per share of $5.90 also exceeded the $3.27 consensus, though that adjusted figure included a $2.53-per-share gain from strategic investments. Revenue was within Salesforce’s own guidance for the quarter.
The company reported that revenue rose 10.8% from a year earlier. Subscription and support revenue increased 12%, while Salesforce’s filing attributed the increase primarily to new customers, upgrades and additional subscriptions from existing customers. The filing said professional services revenue decreased because of lower demand for larger, multi-year transformation engagements.
Salesforce reported diluted EPS of $4.29, compared with $1.96 a year earlier. Its filing said quarterly investment gains included $2.7 billion in unrealized gains related to Anthropic. Gross margin fell to 76.7% from 78.1%, while operating margin declined to 20.5% from 22.8%. The filing attributed higher revenue costs in part to hosting, generative AI technology and acquired intangible assets.
Free cash flow rose to $1.1 billion from $605.0 million. Salesforce’s filing reported current remaining performance obligations of approximately $33.5 billion at July 31, 2026, up 14 percent year over year.
| Q2 FY2027 | Q2 FY2026 | Change | |
|---|---|---|---|
| Revenue | $11.3 billion | $10.2 billion | 10.8% |
| Diluted EPS | $4.29 | $1.96 | 118.9% |
| Gross margin | 76.7% | 78.1% | −1.4 percentage points |
| Operating margin | 20.5% | 22.8% | −2.2 percentage points |
| Free cash flow | $1.1 billion | $605.0 million | 81.5% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Revenue | $11.3 billion | $11.3 billion | In line |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
| Against its own guidance | For | Guided | Reported | Result |
|---|---|---|---|---|
| Revenue | Q2 FY2027 | $11.3 billion–$11.4 billion | $11.3 billion | Within the guide |
What management said on the call
CEO Marc Benioff said Agentforce annual recurring revenue reached $1.5 billion and the number of accounts with agents in production grew 70% from the prior quarter. COO Miguel Milano said bookings grew by triple digits year over year. He added that “Fifty percent of the bookings came from customers refilling the tank”: they had used their flex credits and wanted more.
Benioff described Cloudforce, Salesforce’s product with Anthropic, as a way to combine Claude’s reasoning with Salesforce data, applications and business rules. In response to a question about the product, Milano said Salesforce was rolling it out internally and planned to make it generally available in September. He said customers would need premium editions to purchase it, while Salesforce sellers would demonstrate it alongside other interfaces.
Asked about customers’ adoption and pricing, Benioff said Salesforce offers different ways to pay, including by user, consumption and outcome. He said that flexibility had expanded its ability to sign large transactions. Milano distinguished premium editions for employee-facing uses from flex credits and other arrangements for customer-facing agents; he said some customers pay as they go, while others buy credits in advance.
On competition, Benioff said customers he speaks with want to consume AI through packaged software rather than build and maintain their own models. He said Salesforce’s applications, data, permissions and business rules provide context for its agents.
CFO Robin Washington said momentum in Agentforce, Data 360 and Slack offset continued volatility in overall license revenue. For the quarter ahead, Salesforce expected revenue of $11.42 billion to $11.5 billion and approximately 14% growth in current remaining performance obligations; its release said the latter excluded contributions from the pending Contentful and Fin acquisitions.
Guidance
Salesforce raised its FY2027 revenue guidance to $46.1 billion–$46.4 billion from $45.9 billion–$46.2 billion. The company also raised its subscription and support revenue growth guidance to slightly above 12% year over year. Washington said the revenue outlook included a $200 million expected contribution from the anticipated Contentful and FIN closings.
Salesforce updated its FY2027 GAAP operating margin guidance to 20.1% from 20.6%.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Tax rate, GAAP | Q3 FY2027 | 21.8% | — | New |
| Capex growth, Percent of Revenue | FY2027 | 1.50% | — | New |
| Free cash flow growth, Growth | FY2027 | 4.00%–5.00% | — | New |
| Operating cash flow growth, Growth | FY2027 | 4.00%–5.00% | — | New |
| EPS, non-GAAP | FY2027 | $16.67–$16.71 | — | New |
| EPS, GAAP | FY2027 | $10.21–$10.25 | — | New |
| Operating margin, non-GAAP | FY2027 | 34.3% | 34.3% | Held |
| Operating margin, GAAP | FY2027 | 20.1% | 20.6% | Cut |
| Revenue growth, Subscription and Support Growth | FY2027 | 12.0% | — | New |
| Revenue | FY2027 | $46.1 billion–$46.4 billion | $45.9 billion–$46.2 billion | Held |
| EPS, non-GAAP | Q3 FY2027 | $3.42–$3.44 | — | New |
| EPS, GAAP | Q3 FY2027 | $1.81–$1.83 | — | New |
| Backlog, Current Remaining Performance Obligation Growth | Q3 FY2027 | Salesforce expects Q3 FY2027 current remaining performance obligation growth of approximately 14%. | — | New |
| Revenue | Q3 FY2027 | $11.4 billion–$11.5 billion | Q2 FY2027: $11.3 billion–$11.4 billion; reported $11.3 billion | Raised |
| Free cash flow growth | FY2027 | 4.00%–5.00% | 4.00%–5.00% | Held |
| Operating cash flow growth | FY2027 | 4.00%–5.00% | 4.00%–5.00% | Held |