Salesforce Inc (NYSE:CRM, ETR:FOO) reported record second quarter fiscal 2026 results that exceeded expectations across revenue and earnings, but the company's shares fell on conservative guidance for the third quarter.
Revenue for the quarter ended July 31, 2025, was $10.2 billion, an increase of 10% year-over-year and 9% in constant currency, surpassing analyst estimates of $10.14 billion.
Subscription and support revenue rose 11% to $9.7 billion.
Adjusted earnings per share were $2.91, above expectations of $2.78.
Current remaining performance obligations, a measure of future revenue, rose 11% year-over-year to $29.4 billion.
For the third quarter, Salesforce projected revenue between $10.24 billion and $10.29 billion, representing 8% to 9% growth. The midpoint of this guidance came in slightly below Wall Street expectations of $10.29 billion.
Adjusted EPS guidance of $2.84 to $2.86 was in line with consensus estimates.
Full-year revenue guidance was raised slightly to a range of $41.1 billion to $41.3 billion. The company noted continued but moderate growth expectations amid macroeconomic challenges and cautious enterprise IT spending.
Wedbush analysts described the results as “solid” but cautioned that they were “overshadowed by light guidance.”
They highlighted that Salesforce’s Agentforce strategy remains central to long-term growth, with more than 12,500 deals signed since inception and 6,000 paying customers, up from 4,000 in the prior period.
Data and AI annual recurring revenue rose 120% year-over-year to $1.2 billion, with over 60 new bookings above $1 million, an increase of 26% from last year.
Wedbush noted that Data Cloud remains the core part of Salesforce’s Agentforce strategy, with 140% growth in customers and growing importance for enterprise AI adoption.
The analysts also pointed to the pending Informatica deal, expected to close in fiscal Q4 2026 or early fiscal 2027, though no contribution was included in guidance.
Wedbush maintained its ‘Outperform’ rating but lowered its price target from $425 to $375 to reflect a lower multiple.
“We continue to believe that CRM can emerge as a long-term winner within the AI Revolution, but we need to see improved execution moving forward from its core business while balancing aggressive investments into its data and AI strategies,” the analysts wrote.
Shares of Salesforce fell 8% to about $236 in early trade on Thursday.