Salesforce Q2 revenue $11.35B beats estimates, AI ARR hits $1.5B

MarketBeat Wed, August 26, 2026 at 4:04 PM PDT 7 min read

Ticker: CRM

Key Points

• Salesforce reported strong fiscal Q2 results, with revenue of $11.35 billion, up 11% year over year, free cash flow of $1.1 billion, and CRPO growth of 14% in constant currency.
• AI adoption accelerated: Agentforce ARR reached $1.5 billion, AI and data ARR neared $4 billion, and Agentforce work-unit usage rose 97% sequentially.
• Salesforce raised its fiscal 2027 revenue outlook to $46.1 billion–$46.4 billion and announced Claudeforce, a planned Anthropic partnership integrating Claude with Salesforce data, applications, and workflows.

Financial Highlights

Salesforce (NYSE:CRM) reported fiscal 2027 second-quarter revenue of $11.35 billion, up 11% from a year earlier and above the high end of its constant-currency guidance, while highlighting growing demand for its AI products and raising its full-year revenue outlook.

Chief Operating and Financial Officer Robin Washington said subscription and support revenue totaled $10.82 billion, increasing 12% year over year on a reported basis and 11% in constant currency. Current remaining performance obligations (CRPO) reached $33.5 billion, up 14% in constant currency and one percentage point ahead of the company's guidance.

Salesforce generated $1.1 billion in free cash flow during the quarter, up 81% from a year earlier. Its non-GAAP operating margin was 34.1%, while GAAP operating margin was 20.5%.

AI Products Drive Bookings and Usage

Chair, CEO, and Co-founder Marc Benioff pushed back against concerns that generative AI could weaken demand for traditional software applications, referring to the debate as the "SaaSpocalypse." He said Salesforce's net new annual contract value growth was its strongest in four years, attrition was near its lowest level, and contract terms improved across new business and renewals.

Washington said Agentforce annual recurring revenue (ARR) reached $1.5 billion, while the company's AI and data ARR was nearing $4 billion. The number of accounts with agents in production grew 70% sequentially, according to Benioff.

Customers generated 3.2 billion Agentforce work units during the quarter, a 97% increase from the prior quarter, Washington said. She added that bookings from Agentforce 1 Edition and Agentforce for apps more than doubled sequentially.

Miguel Milano, Salesforce's president and chief operating officer, said the company added 2,000 paying customers in production for Agentforce, up 70% quarter over quarter. He noted that about half of Agentforce bookings came from customers replenishing their usage credits.

Milano also said Salesforce is offering customers multiple pricing approaches, including per-user, per-agent, consumption-based, and outcome-based arrangements. He said customers beginning an "agentic journey" with Salesforce have, on average, reached about twice the company's annual contract value, with the potential to reach three to four times that level.

Additional AI and Product Metrics

• Slackbot reached 1 million active users five months after launch, with users up 150% sequentially.
• Upgrades to premium Slack editions tripled following the Slackbot launch.
• Salesforce's internal help agent handled more than 5 million customer conversations, resolving 64% autonomously.
• Slackbot generated 8.1 million hours of annualized productivity gains for Salesforce employees, more than double the prior quarter.

Claudeforce Partnership With Anthropic

Before the earnings call, Benioff and Anthropic CEO Dario Amodei announced Claudeforce, a product combining Anthropic's Claude AI model and Cowork interface with Salesforce data, applications, workflows, and governance controls.

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