Key Highlights

  • Informatica contributed $456 million of total revenue, so part of the growth was acquired rather than organic.
  • The release put combined Agentforce and Data 360 annual recurring Revenue (ARR) at nearly $3.9 billion, up more than 210%.
  • The Investment gain is not a recurring operating item, and third-quarter non-GAAP EPS guidance sits well below the second-quarter figure.
  • Competition in AI-enabled Business software, currency moves and weaker corporate IT budgets could also affect results.

Salesforce, Inc. (NYSE:CRM), whose common stock trades on the New York Stock Exchange under the ticker CRM, raised its fiscal 2027 revenue outlook on August 26, 2026 after reporting second-quarter results. The update pairs faster growth in its Agentforce Artificial Intelligence (AI) products with a recently completed Informatica acquisition, two pending deals and a large share buyback.

Management says it is on track for second-half organic revenue reacceleration. Whether that happens is the central question for the stock.

What Salesforce Reported

For the quarter ended July 31, 2026, the second quarter of fiscal 2027, total revenue was $11.3 billion, up 11% year on year both as reported and in constant currency. Subscription and support revenue reached $10.8 billion, up 12%. Informatica contributed $456 million of total revenue, so part of the growth was acquired rather than organic.

GAAP Operating Margin was 20.5%, while non-GAAP operating margin was 34.1%. GAAP Diluted Earnings per Share (EPS) were $4.29, up 119%, and non-GAAP diluted EPS were $5.90, up 103%. The quarterly 10-Q shows gains on strategic investments of about $2.6 billion, against $6 million a year earlier, which lifted GAAP Net Income to $3.5 billion.

Operating cash flow was $1.3 billion and free cash flow $1.1 billion. Current remaining performance obligation (cRPO), a gauge of contracted revenue due over the next twelve months, was $33.5 billion, up 14% in constant currency. Total RPO was $66.3 billion, up 11%.

The Agentforce Numbers

The release put combined Agentforce and Data 360 annual Recurring Revenue (ARR) at nearly $3.9 billion, up more than 210%. Agentforce ARR alone exceeded $1.5 billion, up more than 240%. The company also said it has delivered 7.0 billion agentic work units, including 3.2 billion in the quarter.

Chief financial officer Robin Washington said net new annual order value growth was the strongest in four years. These are company-defined, non-GAAP metrics.

Guidance Versus Reported Results

For fiscal 2027, Salesforce now guides revenue of $46.1 billion to $46.4 billion, up 11% to 12%, which it says is $200 million above prior guidance. It expects a GAAP operating margin of 20.1%, a non-GAAP operating margin of 34.3%, GAAP diluted EPS of $10.21 to $10.25 and non-GAAP diluted EPS of $16.67 to $16.71. Operating and free cash flow are guided to grow about 4% to 5%.

For the third quarter, guidance is revenue of $11.42 billion to $11.5 billion, cRPO growth of about 14%, and non-GAAP diluted EPS of $3.42 to $3.44.

Capital Returns

Salesforce returned $364 million in dividends during the quarter and is executing a $25 billion accelerated share repurchase, with 103 million shares initially delivered. Diluted shares used for second-quarter EPS were 821 million.

Sector Context

Across technology services, enterprise software vendors are trying to show that AI agents can generate paid revenue rather than just pilots. The ARR figures give Salesforce firmer evidence than before, but Agentforce remains small relative to a business guiding above $46 billion of annual revenue.

The doubling in EPS should not be read as a new earnings base. The investment gain is not a recurring operating item, and third-quarter non-GAAP EPS guidance sits well below the second-quarter figure.

Risks To Watch

Key risks include integration of Informatica and the pending Contentful and Fin deals, pressure on margins from acquisitions and AI spending, and Volatility in strategic investment valuations. Competition in AI-enabled business software, currency moves and weaker corporate IT budgets could also affect results.

Contentful and Fin Deals Close Within Fiscal Q3

The company expects the Contentful and Fin acquisitions to close during its fiscal third quarter, which ends on October 31, 2026. Final settlement of the $25 billion accelerated share repurchase is expected in October 2026. Third-quarter results will test cRPO and organic growth guidance.