Salesforce delivered a stronger-than-expected second quarter for fiscal 2027, as demand for its artificial intelligence and data products supported revenue growth and strengthened the company’s outlook. The results offer investors an important test of Salesforce’s strategy to integrate AI into its established enterprise software business while maintaining profitability and cash generation.

Salesforce Q2 Revenue and Earnings Show Stronger Performance

Salesforce generated approximately $11.3 billion in revenue during the quarter ended July 31, representing 11% year-over-year growth. Subscription and support revenue reached $10.8 billion, up 12%, while current remaining performance obligations increased 14% to $33.5 billion, indicating continued strength in contracted future revenue.

Adjusted diluted earnings per share came in at $5.90, more than doubling from the prior-year period. GAAP diluted earnings per share reached $4.29, up 119% year over year. Operating cash flow increased 71% to $1.3 billion, while free cash flow rose 81% to $1.1 billion, reinforcing Salesforce’s ability to fund investments in AI while returning capital to shareholders.

AI Products Become a Larger Salesforce Growth Engine

Artificial intelligence was central to the quarter’s performance. Annual recurring revenue from Agentforce and Data 360 reached nearly $3.9 billion, representing growth of more than 210% year over year. Agentforce ARR alone exceeded $1.5 billion, increasing more than 240%.

The figures suggest that Salesforce is moving beyond simply adding AI features to existing software and is increasingly building AI agents into its enterprise platform. The company said 7 billion agentic work units have now been delivered across Agentforce and Slack, including 3.2 billion during the second quarter. Data 360 also processed rapidly increasing volumes of information, highlighting the growing importance of data infrastructure to Salesforce’s AI strategy.

The company is also expanding its AI ecosystem through partnerships, including its relationship with Anthropic. These developments are intended to make Salesforce data, workflows and business processes accessible across a wider range of AI-driven applications.

Full-Year Revenue Guidance Raised as Investors Watch Execution

Salesforce raised its fiscal 2027 revenue guidance to $46.1 billion-$46.4 billion, representing 11%-12% year-over-year growth. The increase includes $100 million from higher organic growth and $200 million associated with the pending acquisitions of Contentful and Fin, partly offset by a $100 million foreign-exchange headwind.

For the third quarter, Salesforce expects revenue of $11.42 billion-$11.50 billion and current remaining performance obligation growth of approximately 14%. The company maintained its full-year non-GAAP operating-margin guidance at 34.3% and expects free cash flow growth of approximately 4%-5%.

Going forward, investors will focus on whether AI products can sustain their rapid growth while Salesforce continues expanding its core enterprise software business. Customer adoption of Agentforce, subscription growth, margins, cash flow and the integration of upcoming acquisitions will be key indicators. The broader test for CRM stock is whether Salesforce can translate its AI momentum into durable organic growth while preserving the profitability that has become central to its investment case.