Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Salesforce's fiscal 2027 second quarter combined double-digit revenue growth with a surge in reported net income, though operating income was essentially flat. Management attributed the top-line momentum to continued strength in Agentforce Apps and Data 360, with the Informatica acquisition contributing $456 million to total revenue. The main tension in the quarter was cost growth: cost of revenue rose faster than revenue and R&D spending increased, which trimmed gross and operating margins. Net income was heavily influenced by a $2.7 billion unrealized gain on the company's Anthropic investment, making the bottom-line expansion less reflective of core operations.
Revenue
$11.35B
+10.83% YoY
EPS (Diluted)
$4.29
+118.88% YoY
Gross Margin
76.7%
-1.4 pts YoY
Operating Income
$2.33B
-0.04% YoY
Source: SEC XBRL
Salesforce (CRM) reported Q2 FY2027 revenue of $11.35B, up 10.8% year over year. Operating margin was 20.5%, down 2.3 points from 22.8% a year earlier. Operating cash flow was $1.27B, up 71.5% year over year. CRM's fiscal Q2 FY2027 corresponds to calendar Q3 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.88 | 3.15 | Beat +23.2% |
| Mar 2026 | 3.81 | 3.08 | Beat +23.9% |
| Dec 2025 | 3.25 | 2.89 | Beat +12.6% |
| Sep 2025 | 2.91 | 2.81 | Beat +3.7% |
Compiled by AI from 10-Q Item 2 of this filing
Subscription and support revenue reached $10.82 billion in Q2 FY2027, representing 95% of total revenue, with term software licenses at about 4% of subscription and support revenue.
Source: 10-Q Item 2 MD&A
The November 2025 acquisition of Informatica contributed approximately $456 million to total revenues in Q2 FY2027 and $900 million in the first six months of fiscal 2027.
Source: 10-Q Item 2 MD&A
Agentforce Apps revenue grew 8% year-over-year to $7.19 billion, while Data 360, Headless Platform, and Other grew 20% to $3.62 billion.
Source: 10-Q Item 2 MD&A
Net gains on strategic investments were $2.61 billion for Q2 FY2027, including a $2.7 billion unrealized gain on the company's Anthropic investment, partially offset by $285 million of impairments on privately held investments.
Source: 10-Q Item 2 MD&A
Total remaining performance obligation was approximately $66.3 billion as of July 31, 2026, up 11% year-over-year, with current remaining performance obligation up 14% to $33.5 billion.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 3 high, 2 medium, 0 low
Salesforce stores sensitive customer data and has been a target of cyberattacks. The company notes that evolving AI-powered attacks and complex third-party dependencies may increase the likelihood and severity of breaches, potentially causing reputational harm and financial liability.
Source: 10-Q Item 1A Risk Factors
The company's expanding use of generative and agentic AI introduces operational and security challenges. AI models are probabilistic, and unanticipated outcomes from agentic AI could disrupt customer systems or create regulatory and legal exposure.
Source: 10-Q Item 1A Risk Factors
Recent acquisitions, including Informatica, Regrello, and Qualified, add integration complexity and potential unidentified liabilities. Failure to realize expected benefits could dilute stockholder value and disrupt operations.
Source: 10-Q Item 1A Risk Factors
The filing identifies debt service obligations and other contractual obligations as a financial risk following the Informatica acquisition and debt offering. Higher interest expense and leverage could constrain financial flexibility.
Source: 10-Q Item 1A Risk Factors
Salesforce relies on third-party data centers, cloud platforms, and underlying internet infrastructure. Interruptions, capacity constraints, or loss of access to critical AI models and vendors could disrupt service delivery and increase costs.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 11.35 $B | 10.24 $B | +10.83% |
Cost of Revenue $B | 2.65 $B | 2.24 $B | +18.15% |
Gross Profit $B | 8.70 $B | 7.99 $B | +8.78% |
Operating Income $B | 2.33 $B | 2.33 $B | -0.04% |
Net Income $B | 3.53 $B | 1.89 $B | +86.86% |
EPS (Basic) $ | 4.30 $ | 1.97 $ | +118.27% |
EPS (Diluted) $ | 4.29 $ | 1.96 $ | +118.88% |
R&D Expense $B | 1.69 $B | 1.48 $B | +13.91% |
Answers draw on this SEC filing and the data on this page
Salesforce (CRM) reported Q1 FY2027 revenue growth of 13.3% to $11.1B and operating-margin expansion to 21.1%, while net income rose 36.7% to $2.1B, aided by a $558M net gain on strategic investments and an accelerated share repurchase that added $0.14 to diluted EPS. Source: 10-Q Item 2 MD&A, pp.30, 34, 37.
Salesforce delivered a strong fiscal year 2026, with revenue growing 9.6% to $41.5B, net income surging 20.3% to $7.5B, and operating cash flow reaching a record $15.0B, while the company aggressively returned capital through $12.6B in share buybacks.
Salesforce delivered a strong fiscal year 2025, with revenue growing 8.7% to $37.9B while operating income surged 43.8% to $7.2B and net income jumped 49.8% to $6.2B, reflecting significant margin expansion and disciplined cost management.
Other companies in Application Software