Salesforce Stock Surges on Strong Earnings and Anthropic Partnership
Salesforce's Q2 earnings report exceeded expectations, sending its stock soaring. The company reported $11.35 billion in revenue, beating estimates by $3 million. Adjusted earnings per share were $5.90, surpassing forecasts of $3.27.
Year-over-year, total revenue rose 11%, while total remaining performance obligations reached $66.5 billion, up 11% from the same period last year. Operating cash flow and free cash flow both increased to $1.3 billion and $1.1 billion, respectively.
Salesforce exited the quarter with approximately $8.3 billion in cash and cash equivalents. CEO Marc Benioff praised the results, citing AI as a key driver of growth: 'AI is delivering value across every layer of our platform.' The company's annualized recurring revenue (ARR) is on track to surpass $4 billion.
Salesforce also raised its fiscal 2027 revenue guidance and adjusted earnings per share forecast. For the third quarter, it expects revenue between $11.42 billion and $11.50 billion, with adjusted earnings of $3.42 to $3.44 per share. The company's full-year outlook has been increased due to strong demand for its AI and data products.
The partnership with Anthropic, announced in conjunction with the earnings report, is likely contributing to the stock's rise. Benioff described the collaboration as 'fusing Claude's extraordinary reasoning with the trusted data, workflows, and governance every enterprise runs on.'