Salesforce Inc (NYSE:CRM, XETRA:FOO) posted second-quarter results that topped Wall Street estimates and raised its full-year guidance, sending shares rocketing over 20% higher on Thursday.
The company reported fiscal 2027 second-quarter revenue of $11.3 billion, in line with analyst estimates of $11.32 billion and up 11% year-over-year.
Adjusted earnings per share came in at $5.90, more than double the $3.27 analysts had expected and up 103% from a year earlier.
Current remaining performance obligation, a measure of contracted revenue, rose 14% year-over-year in constant currency to $33.5 billion.
Salesforce raised its full-year revenue guidance to a range of $46.1 billion to $46.4 billion, above the $46.11 billion analysts had projected. It also lifted its adjusted EPS outlook to $16.67-$16.71, well ahead of the $14.14 consensus estimate.
The company forecast a GAAP operating margin of 20.1% and a non-GAAP operating margin of 34.3% for the year.
For the third quarter, Salesforce guided for revenue of $11.42 billion to $11.5 billion, above the $11.41 billion estimate, and adjusted EPS of $3.42 to $3.44, versus estimates of $3.38. The company expects cRPO growth of about 14% year-over-year in constant currency.
Other second-quarter metrics included remaining performance obligation of $66.3 billion, up 11% year-over-year, and AI and data annual recurring revenue of about $3.9 billion, up more than 210% year-over-year. Operating cash flow rose 71% to $1.3 billion, while free cash flow climbed 81% to $1.1 billion.
"We just delivered one of our best quarters ever, outperforming across every key metric," said Marc Benioff, CEO of Salesforce. "AI is delivering value across every layer of our platform."
Robin Washington, president and chief financial and operating officer of Salesforce, said that NNAOV growth is “the strongest it's been in four years, keeping us on track for second-half organic revenue reacceleration."
