Salesforce Shares Surge as AI Demand Powers Q2 Earnings Beat

Salesforce Inc. (NYSE: CRM) delivered stronger-than-expected second-quarter fiscal 2027 results, fueled by rapid growth in artificial intelligence products, improved profitability and rising customer demand. Salesforce shares jumped more than 11% in after-hours trading following the earnings release.

The cloud software giant reported adjusted earnings of $5.90 per share, sharply exceeding Wall Street’s estimate of $3.27. Quarterly revenue reached $11.3 billion, in line with analyst expectations and up 11% from the same period a year earlier.

Salesforce also raised its full-year fiscal 2027 outlook. The company now expects revenue between $46.1 billion and $46.4 billion, representing annual growth of 11% to 12%. The midpoint of $46.25 billion is above the $46.11 billion analyst consensus.

Adjusted earnings per share for the full year are projected at $16.67 to $16.71, significantly higher than Wall Street’s $14.16 estimate.

CEO Marc Benioff described the period as one of Salesforce’s strongest quarters, highlighting accelerating demand for the company’s AI and data offerings. He said annual recurring revenue from those businesses is approaching $4 billion.

Salesforce’s Agentforce and Data 360 products generated nearly $3.9 billion in annual recurring revenue, an increase of more than 210% year over year. Agentforce ARR alone surpassed $1.5 billion, climbing more than 240%. Current remaining performance obligations, an important measure of future contracted revenue, rose 14% to $33.5 billion.

Profitability also strengthened, with Salesforce posting an adjusted operating margin of 34.1%. Operating cash flow surged 71% year over year to $1.3 billion.

For the third quarter, Salesforce forecasts revenue of $11.42 billion to $11.5 billion. The midpoint of $11.46 billion is slightly ahead of the $11.42 billion consensus estimate. Adjusted EPS is expected between $3.42 and $3.44, compared with analysts’ forecast of $3.39.

The strong Salesforce earnings report underscores how growing enterprise AI adoption is becoming an increasingly important driver of the company’s revenue and profitability.