Salesforce Surges on Strong Q2 Earnings and AI Breakthroughs

Salesforce's fiscal Q2 2027 earnings report exceeded expectations, with adjusted EPS of $5.90 beating consensus by over 80%. Revenue reached $11.35 billion, a year-over-year increase of 11%, while free cash flow surged 81% to $1.1 billion.

The company's AI investment is finally generating measurable revenue, with Agentforce annual recurring revenue growing more than 240% year-over-year to $1.5 billion. The total AI/data ARR stands at $3.9 billion, up 210% YoY, with 50% of bookings coming from existing customers expanding their commitments.

The partnership between Salesforce and Anthropic, which developed the Claudeforce AI plug-in, is a notable announcement. TD Cowen called it a potential 'trajectory changer' for 2027, raising their price target to $280 from $240.