Salesforce reports fiscal Q2 results tonight with guidance calling for revenue of $11.27 billion to $11.35 billion and earnings of $3.25 to $3.27 per share.
Shares have soared 25.68% over the past month, meaning investors will expect Agentforce growth and rising current remaining performance obligations to justify the rebound.
Salesforce trades at 24x earnings, below its historical premium, because Wall Street remains uncertain that AI can restore double-digit organic growth.
Strong Agentforce annual recurring revenue would strengthen the company’s path toward its $63 billion fiscal 2030 revenue target.
A soft report could quickly unwind the recent rally and raise fresh doubts about Salesforce’s pricing power in the agentic AI era.
Salesforce just reported earnings, with shares ripping 13% following the report. Here are the key numbers:
Revenue: $11.3 billion vs. $11.32 billion expected
Adjusted EPS: $5.90 vs. $3.27 expected
Free Cash Flow: $1.1 billion, up 81% year over year
Guidance:
Q3 revenue: $11.42 billion to $11.50 billion vs. $11.41 billion expected
Q3 adjusted EPS: $3.42 to $3.44 vs. $3.38 expected
FY27 revenue: $46.1 billion to $46.4 billion vs. $46.11 billion expected
FY27 adjusted EPS: $16.67 to $16.71 vs. $14.14 expected
Quick Read:
Salesforce is teaming up with Anthropic to deliver Claudeforce, a new Claude integration that lets sales teams access Salesforce data and take actions directly inside Claude.
Salesforce delivered a massive earnings beat and raised its full-year EPS outlook, while revenue and revenue guidance landed close to Wall Street’s expectations.
AI and Data ARR surged more than 210% to nearly $3.9 billion, while cRPO grew 14% in constant currency, strengthening the case that Agentforce is becoming a meaningful growth driver.
Salesforce completed a $27.5 billion share repurchase covering 114 million shares, equal to roughly 10% of its fully diluted share count.
That aggressive capital return could help establish a valuation floor as the company heads into tonight’s earnings report.
The stock trades at nearly 4x revenue and 14x earnings, which are both modest by Salesforce’s historical standards. The company’s enormous buyback, improving technical setup, and relatively low expectations could create a path for the stock to retrace toward $230-$240 from its current price of $206 if management delivers a beat-and-raise quarter.
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