Key financial results
- Revenue: Q2 revenue came in at $11.35 billion, up 11% year-over-year.
Q2 revenue came in at $11.35 billion, up 11% year-over-year, above the high end of our guidance in constant currency
- Subscription and Support: Subscription and support revenue was $10.82 billion, up 12% year-over-year in nominal and 11% in constant currency.
Subscription and support revenue was $10.82 billion, up 12% year-over-year in nominal and 11% in constant currency.
- CRPO: CRPO grew to $33.5 billion, up 14% in constant currency.
CRPO accelerated quarter-over-quarter, with $33.5 billion, up 14% in constant currency, that's 1 point ahead of our guide
- Free Cash Flow: Free cash flow was $1.1 billion, up 81% year-over-year.
Look, we generated $1.1 billion in free cash flow, that was up 81% year-over-year.
- Operating Margins: Non-GAAP operating margin was 34.1% and GAAP operating margin was 20.5%.
Q2 non-GAAP operating margin was 34.1% and GAAP operating margin was 20.5%.
Business segment results
- Agentforce: Agentforce ARR reached $1.5 billion.
Agentforce ARR, it hit $1.5 billion.
- IT Service: Agentforce IT service has more than 450 customers.
We launched Agentforce IT service in November, and it already has more than 450 customers
- Life Sciences: Agentforce Life Sciences has more than 140 customers, including all top 5 pharmaceutical companies.
Agentforce Life Sciences is more than 140 customers, including all top 5 pharmaceutical companies
- Slack: Slack bot has 1 million active users, up 150% quarter-over-quarter.
Five months after launch, it's got 1 million active users, up 150% quarter-over-quarter.
- Apps: Agentforce apps delivered solid growth anchored in Slack and sales and service resilience, with early recovery signs in marketing.
Agentforce apps delivered solid growth, anchored in momentum in Slack and resilience in sales and service with early signs of recovery in marketing.
Capital allocation
- Share Repurchase: The company is executing a $25 billion accelerated share repurchase program, expecting to repurchase at least 14% of shares outstanding at an average price of $176 per share.
Industry trends and dynamics
- Market Demand: Management addressed market skepticism around software demand, stating that net new AOV growth is the strongest in four years and customer attrition is near its lowest level ever.
- AI Integration: Frontier AI models depend on CRM rather than replacing it, with nine of the top 10 AI companies standardizing on Salesforce and Slack.
Competitive landscape
- Claudeforce: Salesforce announced a partnership with Anthropic to launch Claudeforce, combining Claude intelligence with Salesforce workflows and data.
Before turning to our prepared remarks, Marc and Dario just announced Claudeforce a few minutes ago live on CNBC, let's roll the clip.
- Competitor Conversions: The company is seeing customer conversions from competitors like ServiceNow in IT service.
conversions from ServiceNow. I think that's very exciting that we can see that more companies coming into our platform.
Macroeconomic environment
- FX Headwinds: Management noted a $100 million FX headwind affecting fiscal year 2027 revenue guidance.
Of note, our FY '27 revenue now incorporates a $100 million FX headwind compared to our prior guidance.
Growth opportunities and strategies
- Sales Capacity: Salesforce is expanding its go-to-market efforts and plans to hire 1,200 more AEs to reach 15,000 total AEs by the end of the year.
We still have to hire 1,200 more before the end of the year. We are now hitting 15,000 AEs and the innovation.
- Acquisitions: The company announced the upcoming closing of strategic acquisitions Contentful and Fin.
Financial guidance and outlook
- FY27 Revenue: For fiscal year 2027, Salesforce raised its revenue guidance to $46.1 billion to $46.4 billion.
This brings our updated FY '27 guidance for revenue to $46.1 billion to $46.4 billion
- FY27 Margins: Fiscal year 2027 non-GAAP operating margin guidance is held at approximately 34.3%, and GAAP operating margin is updated to approximately 20.1%.
We're holding our non-GAAP operating margin guidance at approximately 34.3%. And we're updating our GAAP operating margin guidance to approximately 20.1%.
- Q3 Revenue: For Q3, revenue is expected to be $11.42 billion to $11.5 billion, representing 11% to 12% growth in constant currency.
We expect Q3 revenue of $11.42 billion to $11.5 billion, growth of approximately 11% to 12% in constant currency.
- Q3 CRPO: Q3 CRPO growth is expected to be approximately 14% year-over-year in constant currency.
Q3 CRPO growth is expected to be approximately 14% year-over-year in constant currency.
Q2 FY2027 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $11.35 billion | Up 11% year-over-year |
| Subscription and support revenue | $10.82 billion | Up 12% year-over-year in nominal and 11% in constant currency |
| CRPO | $33.5 billion | Up 14% in constant currency |
| Non-GAAP operating margin | 34.1% | Not stated |
| GAAP operating margin | 20.5% | Not stated |
| Free cash flow | $1.1 billion | Up 81% year-over-year |
How management sounded
Positive (+45 on our -100 to +100 scale). Management expressed strong confidence driven by record revenue, a raised fiscal year revenue guidance, accelerating net new AOV growth, and massive demand for new AI products like Agentforce and Claudeforce. Management sounded more upbeat than on 32% of the 195 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- The official General Availability and enterprise rollout of Claudeforce at Dreamforce in September 2026.
- The closing and integration of the Contentful and Fin acquisitions in the coming weeks.
- The execution of the $25 billion accelerated share repurchase program and its final share count impact.
Earlier calls
- Q1 FY2027 (May 27, 2026), tone Balanced: Salesforce delivered record revenue of $11.13 billion, up 13% year-over-year, driven by strong momentum in Agentforce and Slack.
