Salesforce, Inc. (NYSE:CRM) reported fiscal 2027 second-quarter revenue of $11.345 billion, up 11% year over year. Agentforce and Data 360 annual recurring revenue, or ARR, reached nearly $3.9 billion, an increase of more than 210%, while Agentforce ARR exceeded $1.5 billion and grew more than 240%.
Salesforce, Inc. (NYSE:CRM) defines Agentforce and Data 360 ARR as the annualized recurring value of active Data 360 and certain generative-AI subscription agreements executed at quarter-end. The measure includes Agentforce, generative-AI products and features, and Headless 360. Approximately $1.1 billion of the combined ARR came from Informatica Cloud. ARR is an operating metric, not recognized GAAP revenue, but its scale shows that the AI and data portfolio is no longer immaterial.
The question for Salesforce, Inc. (NYSE:CRM) is whether that momentum can raise growth across its much larger business.
Bull Case
The AI products are gaining scale. Salesforce, Inc. (NYSE:CRM) reported current remaining performance obligations of $33.5 billion, up 14% year over year on a company-defined non-GAAP constant-currency basis. Constant-currency growth removes exchange-rate and hedging effects. For current RPO, prior-period non-dollar balances are retranslated at current-period ending rates. Current RPO represents contracted revenue expected within 12 months. Total RPO increased 11% to $66.3 billion.
The 14% current RPO growth rate exceeded quarterly revenue growth and strengthened near-term visibility. However, RPO is affected by acquisitions, renewal timing, and contract duration, so the figure does not isolate organic growth. Salesforce, Inc. (NYSE:CRM) also said bookings from Agentforce One Edition and Agentforce for Apps more than doubled sequentially, while Agentforce and Slack delivered 3.2 billion Agentic Work Units during the quarter. Salesforce, Inc. (NYSE:CRM) defines an Agentic Work Unit as a discrete task executed by an AI agent in production, such as resolving a case or updating a record.
Cash generation strengthened as well. Salesforce, Inc. (NYSE:CRM) produced $1.269 billion in operating cash flow, up 71%. Company-defined free cash flow increased 81% to $1.098 billion and is defined as operating cash flow less capital expenditures, which totaled $171 million.
Bear Case
Reported growth at Salesforce, Inc. (NYSE:CRM) still includes a meaningful acquisition contribution. Informatica generated $456 million of quarterly revenue, including $440 million within subscription and support revenue. That contribution represented approximately 4.5 percentage points relative to prior-year revenue and accounted for a material portion of the reported 11% increase.
