- Salesforce reported a revenue of $10.24 billion for the second quarter, representing a 9.8% increase year-over-year.
- On a constant currency basis, revenue grew by 9%, surpassing the estimated growth of 8.42%.
- Subscription and support revenue reached $9.69 billion, up 11% year-over-year, beating the forecast of $9.59 billion.
- Sales stood at $2.27 billion, an increase of 9.5% year-over-year, slightly above the expected $2.24 billion.
- Service revenue was recorded at $2.46 billion, rising by 8.9% year-over-year, exceeding the $2.42 billion estimate.
- Professional services and other revenue decreased 2.7% year-over-year to $546 million, close to the $541.6 million estimate.
- Unearned revenue at the end of the period was $16.56 billion, an 8.8% increase year-over-year, but below the estimated $16.83 billion.
- Adjusted income from operations was $3.51 billion, a 12% year-over-year rise, ahead of the $3.43 billion estimate.
- Adjusted operating margin improved to 34.3% from 33.7% year-over-year, exceeding the forecast of 33.8%.
- The current remaining performance obligation rose by 11% year-over-year to $29.4 billion, surpassing the $29.16 billion estimate.
- Noncurrent remaining performance obligation was $30.5 billion, slightly above the $30.25 billion estimate.
- In constant currency, subscription and support revenue grew by 9%, higher than the estimated 8.62% growth.
- Salesforce experienced a 20% year-over-year decline in free cash flow, reporting $605 million against an estimate of $858.4 million.
- Salesforce provided third-quarter revenue guidance for fiscal year 2026, projecting $10.24 billion to $10.29 billion, marking an 8% to 9% year-over-year increase.
- The company updated its full-year fiscal 2026 GAAP operating margin guidance to 21.2% and increased its non-GAAP operating margin guidance to 34.1%.
- Salesforce raised its full-year fiscal 2026 operating cash flow growth guidance to approximately 12% to 13% year-over-year.
- Marc Benioff, Chair and CEO, stated that Salesforce is on track for fiscal 2026 to be a record year with almost $15 billion in operating cash flow.
- The company’s results reflect the success of its customers like Pfizer, Marriott, and the U.S. Army in transforming workflows and accelerating productivity with AI.
Salesforce.Com Inc on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are closely tracking Salesforce.Com Inc, providing valuable insights for investors. In a recent report titled “CRM US – Salesforce Bets On Agentic Automation: What The Regrello Acquisition Could Unlock!“, Baptista Research highlights Salesforce’s expansion into AI with the acquisition of Regrello. This move underscores Salesforce’s commitment to their “agentic enterprise” vision, combining human expertise with AI capabilities.
Furthermore, in reports like “Salesforce.Com Inc – Salesforce’s Growth Is Slowing—Can Agentforce Turn Things Around?”, Baptista Research notes Salesforce’s solid financial performance in fiscal year 2025. With revenue hitting $37.9 billion and continued growth in subscription and support revenue, the analyst remains optimistic about Salesforce’s future, especially with advancements in AI and Data Cloud initiatives. Such insightful coverage on Smartkarma helps investors stay informed and make strategic decisions regarding Salesforce.Com Inc.
A look at Salesforce.Com Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
salesforce.com, inc. provides software on demand, offering a customer relationship management service globally. Utilizing Smartkarma Smart Scores, the company exhibits a strong long-term outlook. With a high Growth score, Salesforce.Com Inc is positioned for substantial expansion in the future, indicating potential for significant development and market share increase. Alongside this, the company also scores well in Resilience, emphasizing its ability to weather challenges and adapt to changing environments effectively.
Moreover, Salesforce.Com Inc‘s moderate Value and Momentum scores indicate a stable financial standing and a steady pace of growth. Although the Dividend score is lower, the company’s focus on reinvesting in growth opportunities aligns with its high Growth score, making it an attractive prospect for investors seeking long-term capital appreciation.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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