Salesforce (NYSE: CRM) Posts Record Q2 FY2027: Non-GAAP EPS of $5.90 Up 103%, Raises Full-Year Guidance by $200M

Salesforce (NYSE: CRM) reported second-quarter fiscal 2027 results on August 26, 2026, posting adjusted EPS of $5.90 against the $3.15 consensus estimate, a 23.2% beat, while revenue rose 11% year-over-year to $11.3 billion for the quarter ended July 31, 2026. GAAP EPS of $4.29 surged 119% compared to $1.96 in the prior-year period, reflecting substantial operating leverage across the business.

Q2 FY2027 Results

• Revenue: $11.3 billion, up 11% year-over-year and in constant currency, including a $456 million contribution from Informatica
• Subscription and support revenue: $10.8 billion, up 12% year-over-year, including a $440 million Informatica contribution
• GAAP operating margin: 20.5%; non-GAAP operating margin of 34.1%
• GAAP EPS: $4.29, up 119% year-over-year; non-GAAP EPS of $5.90, up 103% year-over-year
• Operating cash flow: $1.3 billion, up 71% year-over-year; free cash flow of $1.1 billion, up 81% year-over-year
• Current remaining performance obligation (cRPO): $33.5 billion, up 14% year-over-year and in constant currency
• Remaining performance obligation: $66.3 billion, up 11% year-over-year

What Drove the Results

The non-GAAP EPS of $5.90 beat the $3.15 consensus by $2.75, or 87.3%, driven by both revenue growth of 11% year-over-year to $11.3 billion and significant margin expansion. Non-GAAP operating income reached $3.85 billion, representing a 34.1% non-GAAP operating margin, with the gap between GAAP and non-GAAP operating income reflecting stock-based compensation expense and amortization of purchased intangibles as the primary adjustments.

Agentforce and Data 360 annual recurring revenue reached nearly $3.9 billion, up over 210% year-over-year. Agentforce ARR alone exceeded $1.5 billion, up over 240% year-over-year, while 7.0 billion Agentic Work Units have been delivered to date, with 3.2 billion processed in Q2 alone, growing 97% quarter-over-quarter. Slack also delivered its fastest quarterly net new annual order value growth since acquisition, with Slackbot users growing over 150% quarter-over-quarter.

Data 360 ingested 104 trillion records in Q2, up 355% year-over-year, including 82 trillion via Zero Copy, up 731% year-over-year. The cRPO growth acceleration to 14% year-over-year in constant currency is a structural demand indicator, reflecting committed future revenue that supports the company's full-year outlook. Capital expenditure for the quarter was $200 million, with full-year capex guidance set at approximately 1.5% of revenue.

Guidance

Salesforce raised its full-year fiscal 2027 revenue guidance by $200 million to a range of $46.1 billion to $46.4 billion, representing 11% to 12% growth year-over-year. The raise reflects $100 million of organic growth, $200 million from the pending acquisitions of Contentful and Fin, partially offset by a $100 million foreign exchange headwind. For the third quarter of fiscal 2027, the company initiated revenue guidance of $11.42 billion to $11.5 billion, up 11% to 12% year-over-year.

Full-year GAAP EPS guidance was set at $10.21 to $10.25, with non-GAAP EPS guidance of $16.67 to $16.71. The company maintained its full-year operating cash flow and free cash flow growth guidance of approximately 4% to 5% year-over-year, and set non-GAAP operating margin guidance at 34.3% for the full year. The final settlement of the company's $25 billion accelerated share repurchase program is expected in October 2026.

Wall Street View

The analyst community has maintained a broadly constructive stance on Salesforce heading into these results, with the most recent consensus reflecting 29 Buy ratings and 14 Strong Buy ratings. Marc Benioff, Chair and CEO, stated in the press release: "We just delivered one of our best quarters ever, outperforming across every key metric. AI is delivering value across every layer of our platform. We're seeing incredible demand for our AI and data products, with ARR about to cross $4 billion."

Investor Takeaway

The 14% cRPO growth in constant currency, accelerating from prior periods, points to strengthening demand commitments that should support the company's second-half organic revenue reacceleration narrative cited by CFO Robin Washington. With Agentforce ARR now exceeding $1.5 billion and the pending closings of both Contentful and Fin expected within the current quarter, the fiscal 2027 revenue guidance range of $46.1 billion to $46.4 billion carries both organic and inorganic growth levers that were not fully priced into consensus estimates entering this report.