Salesforce Sees Major Shift in Q2 Results Amid AI Fears

Salesforce has finally turned a corner after nearly two years of struggling stock performance. The company's Q2 results have alleviated fears about AI disruption, and the business is showing signs of growth and profitability.

The software giant reported $11.35 billion in net revenue, with subscription and service up 12% year-over-year. Annual recurring revenue approached $40 billion and was up 210%, while Agentic Work Units (AWUs) measuring agentic traffic rose by 97% sequentially.

The company's margin was a strength, but Q2 also included one-offs such as pre-tax gains on investments and reduced share count. Adjusted net income grew by more than 100%, bringing adjusted earnings per share to $5.90, which is over $2.60 above forecasts.

Salesforce remains on track with its aggressive share repurchase plans, with a share count down approximately 12.5% on average at the end of the first fiscal half. The company issued a strong outlook for Q3 and raised its full-year subscription revenue outlook, reflecting organic strength and the impact of acquisitions.