Salesforce reported strong fiscal second-quarter 2027 results, with net income up 87% year over year and its Agentforce and Data 360 businesses continuing to scale rapidly. Revenue for the quarter ended July 31 reached $11.35 billion, up 11% from $10.24 billion a year earlier. Subscription and support revenue increased 12% to $10.82 billion, including a $440 million contribution from Informatica. Net income increased to $3.53 billion from $1.89 billion, representing growth of approximately 87%.
Diluted EPS more than doubled to $4.29 from $1.96.
A significant portion of the earnings increase came from Salesforce’s investment portfolio.
The company recorded $2.61 billion of net gains on strategic investments during the quarter, compared with only $6 million a year earlier. Salesforce said those investment gains contributed approximately $2.43 to GAAP diluted EPS.
Operating income was essentially unchanged at $2.33 billion compared with $2.33 billion in the prior-year quarter, while GAAP operating margin declined to 20.5% from 22.8%.
Non-GAAP operating income increased to $3.87 billion from $3.51 billion, while non-GAAP operating margin was 34.1% compared with 34.3%.
At the same time, Salesforce’s artificial intelligence and data businesses continued growing significantly faster than the company overall.
Agentforce and Data 360 annual recurring revenue reached nearly $3.9 billion, up more than 210% year-over-year.
Agentforce ARR exceeded $1.5 billion, representing growth of more than 240%. Beginning in the second quarter, Salesforce’s Agentforce ARR metric also includes AI offerings such as Slackbot and Headless 360.
Usage of Salesforce’s AI agents also accelerated.
The company delivered 3.2 billion Agentic Work Units during the quarter, up 97% sequentially, bringing cumulative Agentic Work Units delivered across Agentforce and Slack to 7 billion.
Salesforce defines an Agentic Work Unit as a discrete task completed by an AI agent in production, such as resolving a customer case, updating a record or triggering an automated workflow.
Slack also posted its fastest quarterly Net New Annual Order Value growth since Salesforce acquired the company, while Slackbot users increased more than 150% sequentially.
Bookings for Agentforce One Edition and Agentforce for Apps more than doubled quarter-over-quarter.
Data 360 continued showing particularly strong usage growth.
The platform ingested 104 trillion records during the quarter, up 355% year-over-year. Of that total, 82 trillion records were ingested through Zero Copy, an increase of 731%.
Data 360 also processed 22 terabytes of unstructured data during the quarter.
Current remaining performance obligations increased 14% year-over-year to $33.5 billion, while total remaining performance obligations reached $66.3 billion, up 11%.
Operating cash flow increased 71% to $1.27 billion, while free cash flow increased 81% to $1.1 billion.
Salesforce raised its fiscal 2027 revenue outlook to $46.1 billion to $46.4 billion, representing expected growth of 11% to 12%.
The $200 million guidance increase includes approximately $100 million of higher organic growth and $200 million from the pending Contentful and Fin acquisitions, partially offset by an approximately $100 million foreign-exchange headwind.
For the third quarter, Salesforce expects revenue of $11.42 billion to $11.5 billion and current remaining performance obligation growth of approximately 14%.
KEY QUOTES:
“We just delivered one of our best quarters ever, outperforming across every key metric.”
“AI is delivering value across every layer of our platform. We’re seeing incredible demand for our AI and data products, with ARR about to cross $4 billion.”
Marc Benioff, Chair and CEO of Salesforce
“AI is amplifying the power, reach, and value of our platform.”
Robin Washington, President and Chief Financial and Operating Officer of Salesforce
