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Earnings call · Jul 2026 (Q2 FY27)

Salesforce Q2 FY27 earnings call CRM

Aug 26, 2026 Source

Executive summary

Salesforce Q2 FY27 — AI-Driven Growth and Record Performance

Salesforce delivered a strong quarter, driven by significant AI innovation and adoption, particularly with the new Claudeforce offering and Agentforce products. The company is seeing reacceleration in organic revenue growth, fueled by robust net new AOV and low attrition, while actively expanding its sales capacity and capital returns program.

Highlights

5

  • Record Q2 revenue of $11.35 billion, up 11% year-over-year, exceeding guidance.

  • Free cash flow reached $1.1 billion, an 81% increase year-over-year.

  • CRPO accelerated to $33.5 billion, up 14% in constant currency, beating guidance by 1 point.

  • Agentforce ARR hit $1.5 billion, with AI and data ARR approaching $4 billion.

  • Net new AOV growth was the strongest in 4 years, and attrition was near its lowest level ever.

Concerns

2

  • FY27 revenue guidance includes a $100 million FX headwind compared to prior guidance.

  • Continued volatility in overall license revenue partially offset growth in other areas.

Guidance & targets

CategoryTargetConfidence
FY27 Revenue
$46.1B to $46.4B
high materiality
High
FY27 Subscription and support growth
slightly above 12% year-over-year and slightly under 12% in constant currency
medium materiality
High
FY27 Non-GAAP operating margin
approximately 34.3%
high materiality
High
FY27 GAAP operating margin
approximately 20.1%
medium materiality
High
FY27 Operating and free cash flow growth
approximately 4% to 5% year-over-year
medium materiality
High
Q3 Revenue
$11.42B to $11.5B
high materiality
High
Q3 Revenue growth
approximately 11% to 12% in constant currency
medium materiality
High
Q3 CRPO growth
approximately 14% year-over-year in constant currency
high materiality
High

CRM operating KPIs by quarter

CRM operating KPIs stated on its earnings calls, by fiscal quarter
KPI Jan 2025 Q4 FY25 Apr 2025 Q1 FY26 Oct 2025 Q3 FY26 Jan 2026 Q4 FY26 Apr 2026 Q1 FY27This call Jul 2026 Q2 FY27Change vs prior quarter
Remaining performance obligation (RPO) —
$60.9B We have $60.9 billion in RPO, up 13% year-over-year, and we had exceptional performance with cRPO growing 11% year-over-year in constant currency. Source transcript
<$60B Miguel is going to talk about this great quarter we had -- the best quarter, I think we've had actually in 3 years and 11% in constant currency and RPO is nearly $60 billion, growing 12% year-over-year. Source transcript
$72B We had $11.2 billion in revenue for the fourth quarter, up 12% year-over-year, 10% in constant currency rose to $35.1 billion, up 16% year-over-year and 13% in constant currency, and we passed an incredible milestone with $72 billion in total RPO, which is up 14% year-over-year. Source transcript
———
Remaining performance obligation (RPO) Current
$30.2B Current RPO, or cRPO, ended at $30.2 billion, an increase of 9% year-over-year in nominal currency. Source transcript
$29.6B Current remaining performance obligation, or cRPO, ended Q1 at $29.6 billion, up 12% year-on-year in nominal and 11% in constant currency, which is better than expected, driven by strong renewal performance. Source transcript
—
$35.1B Our current remaining performance obligation, or CRPO, ended Q4 at $35.1 billion, which was up approximately 16% year-over-year in nominal and 13% in constant currency, driven by strong net new AOV, especially in agent force, Data 360, Slack and sales. Source transcript
$33.6B cRPO $33.6 billion, up approximately 14% nominal and 13% in constant currency. Source transcript
$33.5B CRPO accelerated quarter-over-quarter, with $33.5 billion, up 14% in constant currency, that's 1 point ahead of our guide, driven by strength in Slack, Agentforce and Data 360. Source transcript
-0.3%
Customers Agentforce
3,000 And that's why just 90 days after it went live, we've already had 3,000 paying Agentforce customers who are experiencing unprecedented levels of productivity, efficiency and cost and cost savings. Source transcript
4,000 I think we've got 4,000 paid Agentforce customers, is $100 million in Agentforce ARR, $1 billion and more than Data Cloud and Agentforce ARR. Source transcript
————+33.3%
Annual recurring revenue (ARR) Agentforce—
$100M I think we've got 4,000 paid Agentforce customers, is $100 million in Agentforce ARR, $1 billion and more than Data Cloud and Agentforce ARR. Source transcript
~$540M Agentforce and Data reached nearly $1.4 billion in ARR in the quarter, up 114% year-over-year, including Agentforce ARR of about $540 million, 330% year-over-year. Source transcript
~$800M This includes Informatica Cloud ARR of $1.1 billion an agent force ARR of approximately $800 million, which is up 169% year-over-year. Source transcript
—
$1.5B Agentforce ARR, it hit $1.5 billion. Source transcript
—
Employees Account Executives—
13K Today, we have 13,000 AEs. Source transcript
~15K And I think all of our account executives, [indiscernible] I think we've got about 15,000, I don't know what the exact numbers out there are all selling this now. Source transcript
15K We've never sold or had so much ACV in our history in the fourth quarter because not only does he have 15,000 account executives. Source transcript
—
15K Our ARR for AI and data is about to cross $4 billion, really helps, I guess, that we have 15,000 peer account executives, Miguel. Source transcript
—

Operating figures the company states on every call, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

CRPO $33.5B Q2 FY27

up 14% in constant currency

Accelerated quarter-over-quarter, 1 point ahead of guide, driven by strength in Slack, Agentforce and Data 360.

Product announcements

ProductTypeDetails
Claudeforcelaunch
AI Forcelaunch
Slack Codelaunch
Coworkerlaunch

Deals & partnerships

Anthropic Collaboration to build Claudeforce, combining Anthropic's AI with Salesforce's CRM.

Partnership to create Claudeforce, a new product integrating Anthropic's AI with Salesforce's CRM platform for knowledge workers.

U.S. Army Multi-billion dollar contract expansion for Agentforce. multi-billion dollar

A significant contract expansion for Agentforce, with the Army expecting to utilize AI agents for a high volume of conversations, leading to improved efficiency in areas like recruiting.

Contentful Strategic acquisition to enhance Salesforce's offerings.

One of two strategic acquisitions expected to close soon, contributing to the raised FY27 revenue guidance.

Fin Strategic acquisition to enhance Salesforce's offerings.

One of two strategic acquisitions expected to close soon, contributing to the raised FY27 revenue guidance.

Risks & headwinds

FX headwind FY27

$100M

Mitigation:Incorporated into updated FY27 revenue guidance.

Volatility in overall license revenue Q2 FY27

partially offset growth

Mitigation:Offset by momentum in Agentforce, Data 360, and Slack.

Volatility in integration and analytics Q2 FY27

partially offset growth

Mitigation:Offset by momentum in Informatica and Data 360.

What to watch in Q3 FY27

Organic Revenue Reacceleration

H2 FY27
Current H1 net AOV growth significantly outpaced AOV growth
Target Sustained acceleration in H2 FY27

Why it matters

Management committed to H2 organic revenue reacceleration, which is key for the company's growth trajectory.

H1 net AOV significantly growth outpaced AOV growth. We've already raised the guidance. We've already committed to the revenue acceleration in organically in Q3. The momentum is there. We feel very, very strong.

Q&A highlights

How will Claudeforce be taken to market, and will Salesforce and Anthropic sales teams collaborate?

Marc Benioff highlighted Claudeforce as the #1 AI meeting #1 CRM, powered by the new AI Force harness. Miguel Milano confirmed a company-wide rollout, GA at Dreamforce in September, and that every seller will demo it. He also shared anecdotes of internal use driving significant productivity and deal closures.

“Every single seller of Salesforce will be demoing this product as 1 of the surfaces.”

asked by S. Kirk Materne · answered by Miguel Milano

2 min read 6 chapters

Detailed narrative

AI Innovation and Claudeforce Launch

Salesforce announced Claudeforce, a new product combining Anthropic's #1 AI with Salesforce's #1 CRM, aiming to unlock trapped value in customer systems. This is part of a broader 'AI Force' harness, integrating data, applications, agents, and interfaces to drive enterprise transformation. The product will be generally available at Dreamforce in September, with every Salesforce seller demonstrating its capabilities.

Strong Operational Metrics and SaaSpocalypse Debunked

The company reported its strongest net new AOV growth in four years and near-record low attrition, countering 'SaaSpocalypse' narratives. Agentforce sales, service, and Slack seats all grew year-over-year, and A1E/A4X bookings more than doubled quarter-over-quarter. Agentic use of the platform surged sixfold, demonstrating increased customer engagement.

Agentforce Momentum and Customer Adoption

Agentforce ARR reached $1.5 billion, with AI and data ARR nearing $4 billion. Customer accounts with agents in production grew 70% quarter-over-quarter, adding 2,000 paying customers. Notable wins include Deutsche Telekom, FIFA, NTT Data, Cisco, and a multi-billion dollar agreement with the U.S. Army, with one digital platform customer seeing 14x AW use growth.

Slack's Continued Success and AI Integration

Slack had a phenomenal quarter, with Slack bot reaching 1 million active users, up 150% quarter-over-quarter, and driving 8.1 million hours of annualized productivity for Salesforce employees. The introduction of Slack Code further enhances collaborative AI development, allowing teams of agents and humans to build together.

Flexible Pricing and Monetization Strategy

Salesforce is developing flexible pricing models, including per-user, consumption-based, and even outcome-based pricing, to capture the expanded value delivered by AI. Premium upgrades, offering instantaneous access to innovation, are a key monetization lever, with customers starting their AI journey with Salesforce typically doubling, tripling, or quadrupling their AOV.

Strategic Acquisitions and Guidance Raise

The company is raising its FY27 revenue guidance by $300 million in constant currency, reflecting $100 million from organic performance (Agentforce, Data 360, Slack) and $200 million from anticipated closings of Contentful and Fin acquisitions. This raise is despite a $100 million FX headwind and continued volatility in license revenue.

AI-generated summary of the company's earnings call. Not investment advice.