Salesforce (NYSE:CRM) Posts Quarterly Earnings Results

Salesforce (NYSE:CRM) issued its quarterly earnings results on Wednesday. The CRM provider reported $5.90 EPS for the quarter, beating analysts’ consensus estimates of $3.27 by $2.63, FiscalAI reports. Salesforce had a return on equity of 18.72% and a net margin of 18.73%.The firm had revenue of $11.35 billion for the quarter, compared to analysts’ expectations of $11.33 billion. During the same quarter in the prior year, the firm earned $2.91 EPS. The business’s revenue for the quarter was up 10.8% compared to the same quarter last year. Salesforce updated its FY 2027 guidance to 16.670-16.710 EPS and its Q3 2027 guidance to 3.420-3.440 EPS.

Here are the key takeaways from Salesforce’s conference call:

• Salesforce reported a record quarter, with Q2 revenue of $11.35 billion, up 11% year over year and above the high end of guidance. CRPO rose 14% in constant currency to $33.5 billion, driven by strength in Slack, Agentforce, and Data 360.
• AI adoption continued to accelerate, with Agentforce ARR reaching $1.5 billion, 2,000 additional paying customers entering production, and agentic workloads reaching 3.2 billion AWUs, up 97% quarter over quarter. Management said 50% of Agentforce bookings came from customers replenishing consumed credits.
• The company raised FY2027 revenue guidance by approximately $300 million in constant currency to $46.1 billion-$46.4 billion, including $100 million of organic growth and an expected $200 million contribution from the planned Contentful and Fin acquisitions. Management also reiterated expectations for organic revenue reacceleration in the second half.
• Profitability and capital returns were strong, with $1.1 billion in free cash flow, up 81% year over year, and continued execution of the $25 billion accelerated share repurchase program. Non-GAAP operating margin was 34.1%, while management maintained full-year guidance of approximately 34.3%.
• Management acknowledged continued volatility in licensed revenue and a $100 million foreign-exchange headwind to the fiscal-year outlook. Despite the revenue increase, full-year operating and free-cash-flow growth is expected at only approximately 4%-5%, and GAAP operating margin guidance was updated to about 20.1%.

Salesforce Stock Performance

NYSE:CRM opened at $206.01 on Thursday. The stock has a market cap of $168.72 billion, a P/E ratio of 23.84, a PEG ratio of 1.11 and a beta of 1.16. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 1.15. The business’s 50-day moving average price is $177.13 and its two-hundred day moving average price is $181.60. Salesforce has a twelve month low of $146.32 and a twelve month high of $269.11.

Key Salesforce News

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Results exceeded expectations. Salesforce reported adjusted EPS of $5.90 versus the $3.27 consensus estimate, while revenue rose 10.8% year over year to $11.35 billion, slightly above forecasts. Salesforce Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Higher full-year outlook signals confidence. Salesforce raised fiscal 2027 guidance to $46.1 billion-$46.4 billion in revenue and $16.67-$16.71 in EPS. Its third-quarter EPS forecast of $3.42-$3.44 also exceeds the $3.16 analyst estimate. Salesforce Raises Annual Revenue Forecasts
• Positive Sentiment: AI adoption is becoming a growth catalyst. Agentforce annual recurring revenue reached $1.5 billion, and management said AI usage on the platform has increased sixfold. The figures support Salesforce’s argument that autonomous agents are expanding—not undermining—its CRM ecosystem. Salesforce Q2 Earnings Call Highlights
• Positive Sentiment: Expanded Anthropic partnership strengthens the AI narrative. The new “Claudeforce” integration brings Anthropic’s Claude into Salesforce workflows, data and business processes, potentially increasing enterprise engagement and supporting the company’s competitive positioning. Salesforce and Anthropic Announce Claudeforce
• Positive Sentiment: Analyst support adds momentum. Citizens JMP reiterated a Market Outperform rating with a $315 target, while Canaccord maintained a Buy rating and a $225 target. Citizens JMP Market Outperform Rating
• Neutral Sentiment: Broader technology sentiment also improved after Nvidia delivered strong results and an optimistic AI outlook, lifting confidence in continued enterprise AI spending. Nvidia Outlook Boosts Markets
• Negative Sentiment: Investors remain sensitive to whether AI agents could eventually cannibalize traditional software revenue, and software stocks continue to face elevated volatility. Salesforce’s forecast also includes expected acquisitions, making organic growth an important metric to monitor.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the stock. Erste Group Bank upgraded shares of Salesforce from a “hold” rating to a “buy” rating in a research report on Wednesday, August 5th. Citizens Jmp restated a “market outperform” rating and set a $315.00 price target on shares of Salesforce in a research note on Tuesday. Canaccord Genuity Group reaffirmed a “buy” rating and issued a $225.00 price objective on shares of Salesforce in a report on Tuesday. DA Davidson lowered their target price on shares of Salesforce from $200.00 to $175.00 and set a “neutral” rating on the stock in a report on Thursday, May 28th. Finally, Evercore reaffirmed an “outperform” rating on shares of Salesforce in a report on Tuesday, July 14th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, seventeen have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, Salesforce currently has an average rating of “Moderate Buy” and a consensus target price of $248.72.

Institutional Investors Weigh In On Salesforce

A number of institutional investors and hedge funds have recently bought and sold shares of CRM. Gilpin Wealth Management LLC bought a new position in shares of Salesforce in the 4th quarter worth $26,000. Texas Capital Bancshares Inc TX purchased a new position in Salesforce in the third quarter worth $28,000. Swiss RE Ltd. bought a new position in Salesforce in the fourth quarter valued at $28,000. Birchwood Financial Partners Inc. bought a new position in Salesforce in the fourth quarter valued at $28,000. Finally, Measured Wealth Private Client Group LLC purchased a new stake in Salesforce during the third quarter valued at about $39,000. 80.43% of the stock is owned by hedge funds and other institutional investors.

About Salesforce

Salesforce, founded in 1999 and headquartered in San Francisco, is a global provider of cloud-based software focused on customer relationship management (CRM) and enterprise applications. The company popularized the software-as-a-service (SaaS) model for CRM and has built a broad portfolio of products designed to help organizations manage sales, service, marketing, commerce and analytics through a unified, cloud-first platform.

Core offerings include Sales Cloud for sales automation, Service Cloud for customer support, Marketing Cloud for digital marketing and engagement, and Commerce Cloud for e-commerce.