TLDR
- Salesforce Q2 shines with 10% revenue growth, but stock dips after hours.
- AI and Data Cloud power Salesforce’s strong Q2, yet stock retreats post-earnings.
- CRM posts solid margins and AI gains, but cautious outlook hits shares.
- Salesforce grows fast with Agentforce, but guidance tempers investor optimism.
- Q2 earnings show strength, but Salesforce stock drops on forward-looking fears.
Salesforce ($CRM) stock ended regular trading up 1.42% at $256.45 but dropped 5.60% after hours to $242.10.
10% Revenue Growth and AI Strength Mark Strong Q2
Salesforce reported Q2 revenue of $10.2 billion, showing a 10% increase year-over-year and 9% in constant currency. Subscription and support revenue climbed to $9.7 billion, contributing to a growing top line. The current remaining performance obligation rose 11% to $29.4 billion, supporting future revenue visibility.
The company maintained robust profitability, with a GAAP operating margin of 22.8% and a non-GAAP margin reaching 34.3%. Additionally, Salesforce posted $1.89 billion in net income, while adjusted EPS came in strong at $2.91. These results indicate healthy business fundamentals, even as the market reacted negatively after hours.
Salesforce attributed growth to increased customer demand for AI and automation, driven by tools like Agentforce and Data Cloud. AI and Data Cloud annual recurring revenue surpassed $1.2 billion, marking a 120% year-over-year jump. These metrics underscored AI’s expanding role in Salesforce’s long-term strategy.
Agentforce Adoption Accelerates as Paid Deals Surpass 6,000
Salesforce stated it closed over 12,500 Agentforce-related deals since launch, with more than 6,000 being paid engagements. Over 40% of Q2 bookings for Data Cloud and Agentforce came from existing customers. This trend signals that Salesforce is driving deeper platform adoption across its user base.
Agentforce handled over 1.4 million support requests on help.salesforce.com, showcasing real-world usage at scale. In Q2 alone, the company closed more than 60 deals valued above $1 million involving both AI and Data Cloud. These figures reflect Salesforce’s traction in cross-selling its AI suite to enterprise clients.
Service Cloud and Platform products were included in all top 10 Q2 deals, reinforcing their relevance to enterprise transformation. Salesforce continues positioning itself as a leader in operational AI for business applications. Through these developments, the company is shaping a strategy around agentic enterprise solutions.
Shareholder Returns and Full-Year Guidance Push Long-Term Strategy
Salesforce returned $2.6 billion to shareholders in Q2, including $2.2 billion in share buybacks and $399 million in dividends. The board also approved a $20 billion increase to its share repurchase plan, bringing the total to $50 billion. This move suggests confidence in the company’s financial strength and future cash flow.
The company raised full-year revenue guidance to $41.1–$41.3 billion, reflecting 8.5% to 9% growth. It also updated its full-year GAAP operating margin forecast to 21.2% and boosted non-GAAP margin expectations to 34.1%. Salesforce increased its expected full-year operating cash flow growth to 12%–13%.
Salesforce ($CRM) stock faced immediate pressure after earnings, possibly tied to conservative guidance or market sentiment. Nonetheless, the company emphasized its focus on sustainable growth through AI, customer expansion, and shareholder returns. Salesforce continues to evolve its agentic enterprise model to strengthen its competitive advantage.
