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Salesforce, Inc. (CRM)·Q2 2026 Earnings Summary

Executive Summary

  • Q2 FY26 delivered record revenue of $10.24B (+10% YoY; +9% CC) and non-GAAP operating margin of 34.3%, beating Wall Street estimates on both revenue and EPS; cRPO rose 11% YoY to $29.4B .
  • Non-GAAP diluted EPS was $2.91 vs. consensus ~$2.78; revenue was $10.236B vs. ~$10.138B consensus, marking clean beats on the top and bottom lines (S&P Global estimates)*.
  • Management raised FY26 guidance on the low-end revenue ($41.1–$41.3B), lifted non-GAAP operating margin to 34.1%, and increased operating cash flow growth to ~12–13% YoY .
  • Capital return accelerated: $2.2B buybacks and $399M dividends in Q2; board expanded repurchase authorization by $20B to $50B total, supported by robust cash generation .
  • Catalysts: AI/Agentforce adoption (ARR >$1.2B, +120% YoY), flex consumption pricing, and a larger buyback underpin estimate revisions and sentiment into H2; near-term watch items include mixed regional demand (UK/Japan constrained) and measured retail/public sector pacing .

What Went Well and What Went Wrong

What Went Well

  • Strong beats and margin expansion: revenue grew 10% YoY to $10.236B; non-GAAP operating margin reached 34.3% (+60 bps QoQ), and cRPO rose 11% YoY to $29.4B .
  • AI momentum and monetization: Data Cloud & AI ARR surpassed $1.2B (+120% YoY); >12,500 Agentforce deals since launch (6,000 paid), with 40% of Q2 bookings from existing customers expanding .
  • Capital return stepped up: $2.6B returned to shareholders (including $2.2B buybacks and $399M dividends) and a $20B increase to repurchase authorization to $50B total .

Management quotes:

  • “We exceeded all our financial targets while achieving our tenth consecutive quarter of operating margin expansion” — Robin Washington .
  • “We remain on track for fiscal 2026 to be a record year with nearly $15 billion in operating cash flow” — Marc Benioff .

What Went Wrong

  • Regional and industry mixed signals: UK and Japan were constrained; retail/consumer goods and public sector remained measured despite strength in US, Netherlands, and Switzerland .
  • Marketing & Commerce softness: management cited weakness there and slower growth in the expiration base offsetting momentum in Data Cloud and Agentforce .
  • CRPO impacted by prior sales performance: while normalized bookings are improving, CRPO remains influenced by measured sales performance starting in Q2 FY23, tempering near-term trajectory .

Financial Results

Core P&L and cRPO trends

MetricQ4 FY25Q1 FY26Q2 FY26
Revenue ($USD Billions)$9.993 $9.829 $10.236
GAAP Diluted EPS ($)$1.75 $1.59 $1.96
Non-GAAP Diluted EPS ($)$2.78 $2.58 $2.91
GAAP Operating Margin %18.2% 19.8% 22.8%
Non-GAAP Operating Margin %33.1% 32.3% 34.3%
cRPO ($USD Billions)$30.2 $29.6 $29.4

Results vs Wall Street consensus (S&P Global)

MetricQ1 FY26Q2 FY26
Revenue ($USD Billions)Actual: $9.829 ; Consensus: $9.749*Actual: $10.236 ; Consensus: $10.138*
Non-GAAP Diluted EPS ($)Actual: $2.58 ; Consensus: $2.5465*Actual: $2.91 ; Consensus: $2.7792*

Values marked with * retrieved from S&P Global.

Segment revenue breakdown (Subscription & Support)

Segment ($USD Millions)Q2 FY25 (Jul 31, 2024)Q1 FY26 (Apr 30, 2025)Q2 FY26 (Jul 31, 2025)
Sales$2,071 $2,131 $2,267
Service$2,257 $2,334 $2,458
Platform & Other$1,786 $1,963 $2,084
Marketing & Commerce$1,308 $1,325 $1,365
Integration & Analytics$1,342 $1,544 $1,516
Total S&S$8,764 $9,297 $9,690

Geographic revenue

Geography ($USD Millions)Q4 FY25 (Jan 31, 2025)Q1 FY26 (Apr 30, 2025)Q2 FY26 (Jul 31, 2025)
Americas$6,660 $6,469 $6,736
Europe$2,334 $2,337 $2,429
Asia Pacific$999 $1,023 $1,071
Total$9,993 $9,829 $10,236

KPIs and Cash

KPIQ4 FY25Q1 FY26Q2 FY26
Operating Cash Flow ($USD Billions)$3.970 $6.476 $0.740
Free Cash Flow ($USD Billions)$3.816 $6.297 $0.605
Total RPO ($USD Billions)$63.4 $60.9 $59.9
cRPO ($USD Billions)$30.2 $29.6 $29.4
Share Repurchases ($USD Billions)$0.076 (Q4) $2.633 (Q1) $2.225 (Q2)
Dividends ($USD Billions)$0.383 (Q4) $0.402 (Q1) $0.399 (Q2)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($B)FY26$41.0–$41.3 $41.1–$41.3 Raised low end
GAAP Operating MarginFY2621.6% 21.2% Lowered
Non-GAAP Operating MarginFY2634.0% 34.1% Raised
Operating Cash Flow GrowthFY26~10–11% ~12–13% Raised
Free Cash Flow GrowthFY26~9–10% ~12–13% Raised
Subscription & Support Revenue Growth (CC)FY26~9% CC ~9% CC Maintained
Revenue ($B)Q3 FY26N/A$10.24–$10.29 Initiated
GAAP Diluted EPS ($)Q3 FY26N/A$1.60–$1.62 Initiated
Non-GAAP Diluted EPS ($)Q3 FY26N/A$2.84–$2.86 Initiated
cRPO Growth (Nominal)Q3 FY26N/ASlightly above 10% Initiated

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 FY25, Q1 FY26)Current Period (Q2 FY26)Trend
AI/Agentforce adoption>3,000 paid Agentforce deals by Q4 FY25; ARR ~$0.9B; help portal 380k conv. >12,500 Agentforce deals (6,000 paid); Data Cloud & AI ARR >$1.2B (+120% YoY); 1.4M help requests Accelerating
Consumption pricing (Flex Credits)Flex Credits launched; 30% Agentforce bookings from expansion (Q1) 80% of Agentforce Q2 new bookings via Flex Credits; pay-as-you-go options Scaling
Mid-market/SMB strengthStrong SMB/mid-market bookings in Q1; AE capacity expansion plans SMB/mid-market leading growth; AE count +20% YoY; run-rate momentum Strengthening
Public sectorFedRAMP High for Agentforce planned; large gov’t accounts (VA/Coast Guard) US Army “fast pass” agreement; Agentforce for Public Sector certified FedRAMP High Expanding
Informatica acquisitionSigned definitive agreement; close targeted early FY27; accretive by year 2 Expected close late FY26/early FY27; not included in guidance On track
Capital returnFY25: $9.3B returned; dividend introduced $2.6B Q2 returned; repurchase authorization +$20B to $50B Increasing
Macro/regionalStrong Canada/APAC; EMEA pockets constrained (Q1) US and select EMEA strong; UK/Japan constrained; retail/public sector measured Mixed

Management Commentary

  • “We outperformed on Q2 revenue…non-GAAP operating margin came in strong at 34.3%…and we expect to finish with nearly $15,000,000,000 in operating cash flow” — Marc Benioff .
  • “Data Cloud and AI ARR continues to scale, reaching $1.2 billion in Q2, growing 120% year on year” — Robin Washington .
  • “We brought people to hubs…we hire faster…The low end of the market and the mid market is growing significantly” — Miguel Milano .
  • “We created…forward-deployed engineering…to enable observability and track [agents] and performance manage at scale” — Srini Tallapragada .

Q&A Highlights

  • SaaS vs AI-native disruption: Benioff framed AI as an “extension of SaaS,” emphasizing agents + humans with trusted data, not elimination of apps .
  • Pilot-to-production conversion: Technology catalysts include determinism, agent command center, and enterprise-grade observability to scale use cases across industries .
  • Capital allocation: “Trinity” of buybacks, dividends, and strategic M&A; $20B buyback expansion alongside disciplined, non-dilutive M&A (Informatica, Regrelo) .
  • Growth trajectory: AE capacity +20% YoY with focus on mid-market/SMB; pipeline growing in high teens with big-deal pipeline ~20% growth .
  • Guidance clarifications: Q3 revenue $10.24–$10.29B, cRPO “slightly above 10%” nominal; FY26 non-GAAP margin raised to 34.1% and OCF growth to 12–13% .

Estimates Context

  • Q2 FY26 beat: non-GAAP EPS $2.91 vs. ~$2.78 consensus; revenue $10.236B vs. ~$10.138B (S&P Global estimates)* .
  • Q1 FY26 also beat: non-GAAP EPS $2.58 vs. ~$2.55; revenue $9.829B vs. ~$9.75B (S&P Global estimates)* .
  • Next quarter (Q3 FY26): Company guides revenue $10.24–$10.29B and non-GAAP EPS $2.84–$2.86 vs. consensus ~$10.273B and ~$2.862 (S&P Global estimates)* .

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Multi-faceted beat with margin expansion suggests durable profit discipline alongside AI-driven growth; estimate revisions likely positive for FY26 EPS and FCF trajectories .
  • AI monetization is real: consumption pricing (Flex Credits) and agent expansion underpin ARR growth; watch consumption velocity and expansion “refill the tank” cycles to gauge upside .
  • Capital returns are now a core pillar: $20B buyback authorization boost and recurring dividends provide downside support and EPS accretion .
  • Data stack as strategic moat: Informatica, Data Cloud, MuleSoft, Tableau integrated in the “AI Foundation” can increase share in enterprise AI workloads post-close (no FY26 contribution assumed) .
  • Near-term risk checks: regional constraints (UK/Japan), measured retail/public sector, and the lagged CRPO impact from prior sales performance; monitor H2 pipeline conversion .
  • Operating cash flow outlook raised to 12–13% growth with capex <2% of revenue supports consistent FCF and buyback capacity .
  • Trading lens: strong execution, raised margin/OCF guidance, and accelerating AI adoption create a constructive setup into Dreamforce and Q3; watch guidance cadence vs consensus each print .