Salesforce beat estimates on revenue and earnings per share last quarter, as it begins to recover from a year-long slowdown in growth.
However, the results failed to satisfy investors as the company’s guidance fell slightly short of expectations.
Revenue was US$10.24 billion, rising 10% year-over-year and passing Benzinga estimates of $10.13. Earnings per share were $2.91, up from $2.56 and above estimates of $2.78.
“We delivered an outstanding quarter to close out the first half of the year, with strong performance across revenue, margin, cash flow, and cRPO — and we remain on track for fiscal 2026 to be a record year with nearly $15 billion in operating cash flow,” said Salesforce CEO Marc Benioff.
“These results reflect the success of our customers — like Pfizer, Marriott, and the U.S. Army — who are transforming into agentic enterprises, where humans and AI agents work side by side to reimagine workflows, accelerate productivity, and deliver customer success.”
Income from operations was $3.51 billion, compared with $3.14 billion one year ago. Free cash flow was $605 million, down from $755 million.
The company’s sales growth had previously been in the single digits for four consecutive quarters, with its share price dropping 25% across 2025 to date. It also cut 4,000 of its customer support staff, Benioff said this week, crediting the layoffs to the impact of artificial intelligence.
The Asia Pacific led revenue growth last quarter, up 11% to $1.1 billion. Americas revenue increased by 9% to $6.7 billion, while Europe, Middle East, and Africa revenue rose 7% to $2.4 billion.
The company’s subscription & support revenue was $9.7 billion, growing 11% year-over-year. Data Cloud & AI annual recurring revenue was up 120% to more than $1.2 billion, Salesforce said.
Current remaining performance obligations were $29.4 billion. This is a 10% increase in constant currency, above the 9% COO Robin Washington predicted in May.
However, the outlook for the next quarter came in softer than anticipated, with guidance projecting revenue of $10.24–$10.29 billion and earnings per share of $2.84–$2.86, which at the midpoint falls short of Wall Street’s $10.29 billion estimate.
The company’s full-year outlook includes revenue of $41.1-41.3 billion.
Salesforce’s (NYSE: CRM) share price dropped 5.6% to $242.13 in after-hours trading, following a close at $256.45. Its market capitalisation is $245.17 billion.
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