Salesforce (CRM) reported a strong fiscal second quarter, driven by solid demand across its subscription and support services. The software giant delivered adjusted earnings per share of $2.91, which easily surpassed the analysts’ consensus of $2.78. Also, revenue came in at $10.24 billion, topping forecasts of $10.14 billion and marking a 10% year-over-year increase. Following the earnings release, CRM stock was down about 4% in the after-hours trading.
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Also, the company’s current remaining performance obligation (cRPO), a key indicator of future revenue, rose 11% to $29.4 billion.
CEO Marc Benioff said, “These results reflect the success of our customers—like Pfizer, Marriott, and the U.S. Army—who are transforming into agentic enterprises, where humans and AI agents work side by side to reimagine workflows, accelerate productivity, and deliver customer success.”
Agentforce Gains Traction
In an update for Agentforce, CRM’s AI platform, the company said it has closed over 12,500 deals since launch, with more than 6,000 being paid. Also, Salesforce disclosed that over 40% of Q2 bookings for Data Cloud and Agentforce came from existing customers, signaling strong retention and upsell momentum.
Moreover, Agentforce has handled over 1.4 million support requests on Salesforce’s help portal, which reflects its growing role in customer service automation.
Impressive Capital Deployment Activities
Salesforce returned $2.6 billion to shareholders during the quarter, including $2.2 billion in share repurchases and nearly $400 million in dividends.
Importantly, the company has announced a $20 billion increase to its existing buyback program, bringing the total authorized repurchases to $50 billion.
Lifts Guidance for FY26
Looking ahead, CRM slightly raised the low end of its full-year revenue forecast to a range of $41.1 billion to $41.3 billion. Further, the company has lifted its adjusted earnings outlook to $11.33 and $11.37 from the previous guidance of $11.27 to $11.33. Analysts are predicting EPS of $11.29 on revenue of $41.24 billion.
Also, Salesforce initiated third-quarter revenue guidance of $10.24 billion to $10.29 billion, representing 8% to 9% growth. Also, it expects $2.84 to $2.86 in adjusted earnings per share. Analysts are projecting earnings of $2.85 per share on revenue of $10.28 billion.
Is CRM a Buy, Sell, or Hold?
Turning to Wall Street, CRM stock has a Moderate Buy consensus rating based on 16 Buys and eight Holds assigned in the last three months. At $333.68, the average Salesforce stock price target implies a 30.09% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
