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Salesforce Beats Fears of SaaSpocalypse with Strong AI-Fueled Growth
Salesforce's quarterly results helped calm investors' fears of a 'SaaSpocalypse', a hypothetical scenario where advances in artificial intelligence (AI) erode the need for software sold on a subscription basis. CEO Marc Benioff dismissed these concerns, saying 'this nonsense of this SaaSpocalypse, I think it is time for it to stop.'
The company's revenue rose 11% year over year to $11.3 billion in its fiscal 2027 second quarter, with AI delivering value across every layer of the platform.
Salesforce's Agentforce offering, which helps customers create AI agents to perform business tasks, grew particularly fast, with ARR increasing over 240% to $1.5 billion.