CRM Q2 2027 Earnings

Call Details

• Call Title: Salesforce Q2 2027 Earnings Call
• Date: August 26, 2026 at 8:30 PM UTC
• Management Team:
  • Marc Benioff (Chair, Chief Executive Officer and Co-founder)
  • Robin Washington (Chief Operating and Finance Officer)
  • Patrick Stokes (President, Applications and Marketing)
  • Miguel Milano (President and Chief Revenue Officer)
  • Mark Murphy (Executive Vice President of Global Investor Relations)

Call Summary

Financial Performance

• Q2 revenue was $11.35B, which the company reported as up 11% year over year.
• Subscription and support revenue reached $10.82B, which management reported as up 12% year over year in nominal terms and 11% in constant currency.
• CRPO accelerated to $33.5B, which was reported as up 14% in constant currency versus the prior period.
• The company generated $1.1B in free cash flow, which was reported as up 81% year over year.
• Q2 non-GAAP operating margin was 34.1% and GAAP operating margin was 20.5% for the quarter.
• AgentForce ARR reached $1.5B during the quarter.
• The ARR for AI and data was reported as about to cross $4B.
• Agentic usage signals were strong with customers driving 3.2B AWUs in Q2, which management reported as up 97% quarter over quarter.

Guidance

• The company raised FY27 revenue guidance by approximately $300M in constant currency versus prior guidance.
• The FY27 organic raise was $100M in constant currency and the raise assumes $200M of expected contribution from anticipated closings of Contentful and Fenn.
• Updated FY27 revenue guidance was provided at $46.1B to $46.4B.
• FY27 subscription and support growth was guided to slightly above 12% year over year in nominal terms and slightly under 12% in constant currency.
• The company held non-GAAP operating margin guidance at approximately 34.3% and updated GAAP operating margin guidance to approximately 20.1%.
• Operating and free cash flow growth for FY27 was reiterated at approximately 4% to 5% year over year.
• Q3 revenue was guided to $11.42B to $11.5B, representing growth of approximately 11% to 12% in constant currency.
• Q3 CRPO growth was guided to approximately 14% year over year in constant currency.
• The company noted a $100M FX headwind was incorporated into the updated FY27 guidance.