Salesforce Beats Earnings Expectations, Raises Full-Year Revenue Outlook

Salesforce reported its second-quarter earnings on August 23, exceeding expectations and raising its full-year revenue outlook. The company's fiscal 2027 second-quarter revenue reached $11.35 billion, a 11% increase from the same period last year.

The growth was driven by demand for AI products, with subscription and support revenue up 12% year over year to $10.82 billion. Current remaining performance obligations (CRPO) also increased 14% in constant currency to $33.5 billion, exceeding the company's guidance.

Salesforce generated $1.1 billion in free cash flow during the quarter, an 81% increase from a year ago. The non-GAAP operating margin was 34.1%, while GAAP operating margin was 20.5%. Chairman and CEO Marc Benioff attributed the company's success to its AI products, which he said have driven bookings and usage.

Benioff also announced Claudeforce, a product combining Salesforce data with Anthropic's Claude AI model. The offering is designed to create a personalized interface that can analyze and act on information within Salesforce. Benioff expects Claudeforce to be generally available in September and plans for its sales organization to demonstrate the product at Dreamforce.