Salesforce Soars on Strong Q2 Earnings and Accelerating AI Momentum

Salesforce's Q2 earnings report was a resounding success, sending its stock soaring more than 20% on Thursday and another 3% in Friday's trading session. The company posted revenue of $11.34 billion, up nearly 11% year over year and exceeding the Zacks Consensus estimate of $11.31 billion.

Salesforce's adjusted net income was a staggering $3.53 billion, translating to adjusted EPS of $5.90, a 103% increase from last year's $2.91 per share. This massive earnings beat was largely driven by gains on Salesforce's strategic investments, including its stake in artificial intelligence firm Anthropic.

However, excluding the impact of these investment gains, underlying adjusted EPS was reportedly around $3.37, still a respectable number that topped expectations. The company's operating cash flow surged 71% to $1.3 billion and free cash flow jumped 81% to $1.1 billion.

Salesforce also saw its current remaining performance obligations (cRPO) climb 14% to $33.5 billion, a key indicator of future sales growth. Management raised its fiscal 2027 revenue guidance to $46.1-$46.4 billion (+11% growth), with Q3 revenue expected at $11.42-$11.5 billion.

The company's AI momentum is also gaining traction, with its Agentforce and Data 360 platforms experiencing significant growth. Salesforce's expanded partnership with Anthropic and the launch of Claudeforce are expected to further accelerate this trend.