Salesforce (NYSE:CRM) shares jumped 11% in US premarket trading on Thursday after the enterprise software group delivered second-quarter results ahead of Wall Street expectations, supported by rapidly expanding artificial intelligence demand, stronger profitability and robust cash generation.
Adjusted earnings reached $5.90 per share, comfortably exceeding the analyst estimate of $3.27 by $2.63. Revenue rose 11% year on year to $11.3 billion, in line with the market consensus.
The strong performance prompted Salesforce to raise its fiscal 2027 outlook, reinforcing confidence in the company’s ability to convert growing demand for AI and data products into higher earnings.
Salesforce raises fiscal 2027 guidance
Full-year revenue is now expected to reach between $46.1 billion and $46.4 billion, representing annual growth of 11% to 12%. The midpoint of $46.25 billion is ahead of the analyst consensus of $46.11 billion.
Salesforce also increased its adjusted earnings guidance to between $16.67 and $16.71 per share, substantially above the current consensus forecast of $14.16.
“We just delivered one of our best quarters ever, outperforming across every key metric,” said Marc Benioff, Chair and CEO. “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.”
For the third quarter, Salesforce forecasts revenue of $11.42 billion to $11.5 billion. The midpoint of $11.46 billion is slightly above Wall Street expectations of $11.42 billion.
Adjusted third-quarter earnings are projected at between $3.42 and $3.44 per share, compared with the analyst estimate of $3.39.
Agentforce and Data 360 deliver rapid expansion
Salesforce’s AI-focused businesses continued to demonstrate significant momentum during the quarter.
Combined annual recurring revenue from Agentforce and Data 360 approached $3.9 billion, representing growth of more than 210% year on year. Agentforce alone generated ARR of more than $1.5 billion, an increase of over 240%.
Current remaining performance obligation, an important measure of contracted future revenue, increased 14% to $33.5 billion.
Profitability also strengthened, with adjusted operating margin reaching 34.1%. Operating cash flow climbed 71% year on year to $1.3 billion, providing further evidence of improving operating leverage.
Analysts see potential for accelerating growth
Raymond James analysts highlighted Salesforce’s expectation that key growth measures should accelerate again during the second half of fiscal 2027.
“The news comes in stark contrast to other front-office software vendors that referenced extended sales cycles through 2026, and points to potential advantages for Salesforce,” the analysts wrote.
The outlook adds to signs that Salesforce could benefit from its growing portfolio of AI-enabled products as businesses increase spending on automation, data management and intelligent software tools.
Salesforce expands Anthropic partnership with Claudeforce
Salesforce also announced an expanded collaboration with artificial intelligence company Anthropic, creating another potential avenue for growth across its AI ecosystem.
The companies are developing “Claudeforce,” which will combine Anthropic’s advanced plug-ins with Salesforce’s suite of enterprise applications.
Selected pilot customers can already access the offering, while Salesforce and Anthropic plan to release a beta version next month.
The combination of accelerating AI revenue, higher margins, stronger cash flow and upgraded full-year guidance provides Salesforce with positive momentum as it moves into the second half of fiscal 2027.