Salesforce, Inc. (CRM)
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Closed：Aug 26, 4:00 PM [New York·UTC-4]
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Overview
News/Announcements
Earnings Call
Chip Analysis
Financial
Dividend
Shareholder
Profile
Podcast
ETF Holdings
Convertible Bonds
Speakers
Mark Murphy
Head of Investor Relations
Marc Benioff
Co-Founder, Chairman & CEO
Dario Amodei
CEO
David Friedberg
CEO
Robin Washington
Chief Operating and Financial Officer
Operator
Kirk Materne
Analyst
Miguel Milano
President & Chief Revenue Officer
Alex Zukin
Analyst
Elizabeth Porter
Analyst
Gabriela Borges
Analyst
John DiFucci
Analyst
CRM Q2 FY2027 earnings call
Summary
Salesforce delivered a record second quarter for fiscal 2027, with revenue of $11.35 billion, up 11% year-over-year, exceeding the high end of guidance. Non-GAAP operating margin reached 34.1%, and free cash flow surged 81% to $1.1 billion. The <a href="https://bitcomme.com/amazon-nabs-dutch-data-analytics-company-ducklabs/” title=”Amazon nabs Dutch data analytics company DuckLabs”>company highlighted strong net new AOV growth, the strongest in four years, and near-record low attrition, countering the ‘SaaSpocalypse’ narrative. Agentforce ARR hit $1.5 billion, and AI-driven consumption (AWUs) grew 97% quarter-over-quarter. Management raised full-year revenue guidance by $300 million to $46.1-$46.4 billion, driven by organic strength and the anticipated closings of Contentful and Fin. The company also announced ‘Claudeforce,’ a joint product with Anthropic, combining Claude’s AI with Salesforce’s CRM platform, which is expected to be a major growth driver.
Operations Data
Financial Performance
- Revenue: $11.35 billion, up 11% YoY (constant currency), above guidance.
- Subscription and support revenue: $10.82 billion, up 12% YoY (nominal), 11% constant currency.
- CRPO: $33.5 billion, up 14% constant currency, accelerating QoQ.
- Non-GAAP operating margin: 34.1%; GAAP operating margin: 20.5%.
- Free cash flow: $1.1 billion, up 81% YoY.
- EPS: Record (specific figure not provided in transcript).
Business Highlights
- Agentforce ARR: $1.5 billion, with bookings more than doubling QoQ.
- AI consumption: 3.2 billion AWUs in Q2, up 97% QoQ; Slackbot users up 150% QoQ.
- Slack: Strongest quarterly net new AOV growth since acquisition; premium edition upgrades tripled since Slackbot launch.
- Customer wins: U.S. Army multi-billion dollar expansion, Deutsche Telekom, FIFA, NTT Data, Cisco, and others.
- New products: Claudeforce (with Anthropic), Slack Code, Agentforce IT Service (450+ customers), Agentforce Life Sciences (140+ customers).
- Attrition: Near record low.
- Net new AOV: Strongest growth in four years, outpacing AOV growth.
Regional Performance
- Strong performance in Europe, with Marc Benioff noting extensive customer meetings and success in the region.
- U.S. government business expanded with the Army contract.
Key Metrics
- AWUs: 3.2 billion, up 97% QoQ.
- Slackbot users: 1 million active users, up 150% QoQ.
- Agentforce production accounts: Up 70% QoQ.
- AI company spend: Top 10 AI companies (9 of 10) increased spend 435% YoY.
Outlook
For Q3 FY2027, Salesforce expects revenue of $11.42-$11.5 billion, growth of approximately 11%-12% constant currency, and CRPO growth of approximately 14% constant currency (excluding Contentful and Fin). For the full year FY2027, the company raised revenue guidance to $46.1-$46.4 billion, up $300 million from prior guidance, including a $200 million contribution from Contentful and Fin (expected to close in coming weeks) and a $100 million FX headwind. Non-GAAP operating margin guidance is maintained at approximately 34.3%. Operating and free cash flow growth is expected to be approximately 4%-5% YoY. Management expressed confidence in second-half organic revenue re-acceleration, driven by Agentforce, Data 360, and Slack momentum. They also plan to hire 1,200 additional account executives, reaching 15,000 total. Further details on FY2028 will be provided at Dreamforce Investor Day.
Q&A Highlights
Q: (Kirk Materne) How will Claudeforce be taken to market?
A: Marc Benioff and Miguel Milano explained that Claudeforce will be a key product for all Salesforce sellers, with GA availability at Dreamforce in September. They will work hand-in-hand with Anthropic sales teams. The product is already being used internally by Salesforce executives, and it will be a major focus for customer demos and premium edition upgrades.
Q: (Alex Zukin) How do you see the open-e Claudeforce and headless?
A: Marc Benioff emphasized that customers consume AI through packaged software, not by building models. He sees opportunity in both frontier and open-ayer. Monetization will come through premium editions, consumption-based pricing, and outcome-based deals, with flexibility for customers
Q: (Elizabeth Porter) What proportion of Agentforce ARR is from paying production customers, and how has the pilot-to-paid timeline changed?
A: Miguel Milano noted that bookings doubled YoY, with 50% from customers refilling credits. They added 2,000 paying customers in production (up 70% QoQ) and saw strong consumption. He highlighted examples like Amazon Blink and biBERK, and mentioned a large digital platform customer with 45 million AWUs, growing 14x. Pricing flexibility (outcome-based, ILA) is helping close deals.
Q: (Gabriela Borges) Will Salesforce capture the same ACV from headless configurations as from Agentforce?
A: Robin Washington and Miguel Milano said monetization is evolving, but they are confident in the strategy. Premium editions provide access to innovation, and customers starting agentic journeys typically double to quadruple their AOV. They are measuring this and will provide updates at Dreamforce.
Q: (John DiFucci) How sustainable are the low attrition and strong net new AOV growth?
A: Marc Benioff highlighted three pillars: low attrition, high net new AOV, and new value added through AI. Miguel Milano added that they are committed to H2 revenue re-acceleration, with record pipelines and capacity (15,000 AEs, hiring 1,200 more). Robin Washington noted durable seat growth in sales and service.
ⓘ Content may contain inaccuracies due to audio quality or AI recognition issues. Please refer to the original audio/video.
Mark Murphy
Head of Investor Relations
00:00:00
Good afternoon, and thanks for joining us today on the fiscal 2027 second quarter results conference call. Our press release, SEC filings, and a replay of today’s call can be found on our website.
Joining me on the call today is Marc Benioff, Chair, CEO, and Co-founder, and Robin Washington, Chief Operating and Financial Officer.
We also have Patrick Stokes, President, Applications and Marketing, and Miguel Milano, President and Chief Operating Officer, joining us for the Q&A portion of the call.
Some of our comments today may contain forward-looking statements that are subject to risks, uncertainties, and assumptions which could change.
Should any of these risks materialize or should our assumptions prove to be incorrect, actual company results or outcomes could differ materially from these forward-looking statements.
A description of these risks, uncertainties and assumptions and other factors that could affect our financial results or outcomes is included in our SEC filings, including our most recent report on forms 10-K, 10-Q, and any other SEC filings.
Except as required by law, we do not undertake any responsibility to update these forward-looking statements. As a reminder, our commentary today will include non-GAAP measures.
Reconciliations between our GAAP and non-GAAP results and guidance can be found in our earnings materials and press release. Before turning to our prepared remarks, Marc and Dario just announced Claudeforce a few minutes ago live on CNBC.
Let’s roll the clip.
Marc Benioff
Co-Founder, Chairman & CEO
00:01:28
This is really the best of both worlds. This is the number one AI in the world, Anthropic, and the number one CRM, Salesforce, coming together for the first time in an incredibly powerful way to build a new product called Claudeforce.
It’s really a first in the industry, Jim. We’ve never seen anything like it. It’s completely exciting. I think that this is the way all enterprise systems are going to run in the future.
We found that this combination product that we’ve built together is the most useful thing in accelerating it. Within Anthropic, for a long time, we’ve been accelerating the research teams within Claude.
This is the first time that we’ve really been able to incredibly accelerate our go-to-market efforts within Claude, and we want that for all the other enterprises, and me and Marc want to bring it together to everyone.
We’ve already worked with Salesforce in a number of ways. We’re big users of Salesforce. Salesforce is big users of Claude Code, of Cowork, of other tools. We’ve put products like Claude Tag in Slack already, which is a part of Salesforce.
Now this combination is a way to gain something that’s one plus one equals three, something that’s bigger than the sum of its parts.
My chief commercial officer was just demoing this for me with some of the internal stuff we do within Anthropic just half an hour ago, where he asked, “What are the biggest accounts that Anthropic is trying to close now?
Give me a list of the biggest accounts. Talk me through the risks of each one.” All the data, all the information comes from being managed in Salesforce. The conversation, the interaction, that comes through Claude.
You can see how these two things can be more than the sum of their parts.
