Salesforce shares jump on strong earnings, raised FY27 outlook
1/9
Salesforce Stock Surges 23%
Salesforce shares jumped 22.6% on Thursday, marking the company’s second-biggest one-day gain ever. The rally followed better-than-expected fiscal second-quarter results, higher full-year guidance and an expanded AI partnership with Anthropic.(Sources: Reuters, Yahoo Finance, Motley Fool)
2/9
Revenue Tops Expectations
Salesforce reported fiscal Q2 revenue of $11.35 billion, up 11% year over year and slightly above Wall Street expectations of $11.33 billion. Subscription and support revenue rose 12% to $10.8 billion.
3/9
Adjusted Profit More Than Doubles
Non-GAAP earnings per share surged 103% year over year to $5.90, compared with analysts’ expectations of around $3.27. GAAP diluted EPS rose 119% to $4.29.
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4/9
Anthropic Investment Boosts Profit
A major factor behind the sharp jump in reported earnings was Salesforce’s investment portfolio. Gains on strategic investments contributed $2.53 of the $5.90 in adjusted EPS, including a substantial gain from its investment in AI company Anthropic.
5/9
AI Business Gains Momentum
Salesforce’s AI offerings continued to expand rapidly. Agentforce and Data 360 ARR reached nearly $3.9 billion, while Agentforce ARR alone climbed to about $1.5 billion, rising more than 240% year over year.
6/9
Claudeforce Partnership Unveiled
Salesforce and Anthropic expanded their partnership with Claudeforce, integrating Anthropic’s Claude AI models with Salesforce’s enterprise data, workflows and business processes. The initial offering includes dozens of prebuilt AI sales skills.
7/9
Full-Year Guidance Raised
Salesforce raised its fiscal 2027 revenue forecast to $46.1 billion-$46.4 billion, from its previous $45.9 billion-$46.2 billion range. Adjusted EPS guidance was raised sharply to $16.67-$16.71, from $14.06-$14.12 previously.
8/9
Strong Cash Flow, Contract Backlog
Current remaining performance obligations rose 14% year over year to $33.5 billion. Operating cash flow increased 71% to $1.3 billion, while free cash flow jumped 81% to $1.1 billion in the quarter.
9/9
AI Threat Narrative Takes a Turn
Salesforce’s results offered investors evidence that AI could complement rather than simply disrupt traditional enterprise software. The Anthropic partnership, accelerating Agentforce adoption and stronger guidance helped ease concerns around the so-called AI-driven threat to SaaS companies.