Salesforce Delivers Record Second Quarter Fiscal 2027 Results

Transcript

1. #1prepared remarks

   EX-99.1 2 crm-q2fy27xexhibit991.htm EX-99.1

2. #2prepared remarks

   Salesforce Delivers Record Second Quarter Fiscal 2027 Results cRPO growth accelerates to 14% Y/Y CC; Raises FY27 revenue guidance by $200M, $300M in CC

3. #3prepared remarks

   SAN FRANCISCO, Calif. - August 26, 2026 - Salesforce (NYSE: CRM), the world's #1 AI CRM, today announced results for its second quarter fiscal 2027 ended July 31, 2026.

4. #4prepared remarks

   ) of $33.5 billion, up 14% year-over-year (

5. #5Marc Benioff · Chair and CEO, Salesforce

   We just delivered one of our best quarters ever, outperforming across every key metric,

6. #6Robin Washington · President and Chief Financial and Operating Officer, Salesforce

   AI is amplifying the power, reach, and value of our platform,

7. #7prepared remarks

   ) reached nearly $3.9 billion, up over 210% Y/Y • Agentforce ARR exceeded $1.5 billion, up over 240% Y/Y. Effective Q2 FY27, Agentforce ARR includes our AI offerings, Slackbot and Headless 360 • 7.0 billion Agentic Work Units (“AWUs

8. #8prepared remarks

   Guidance Salesforce raises full year FY27 revenue guidance to $46.1 billion to $46.4 billion, up 11% - 12% Y/Y and 11% Y/Y in CC. In June, Salesforce announced separate definitive agreements to acquire Contentful and Fin. The Company now expects both transactions to close independently in the coming weeks, during the third quarter of Salesforce's fiscal year 2027. These acquisitions have been incorporated into all metrics within the Company's updated guidance, with the exception of cRPO; the guidance is conditional upon the closing of these transactions.

9. #9prepared remarks

   With the U.S. dollar strengthening in Q2, Salesforce now expects a reduced currency tailwind for the business relative to prior guidance. This currency movement has been incorporated into the Company's updated guidance.

10. #10prepared remarks

    • Initiates third quarter FY27 revenue guidance of $11.42 billion to $11.5 billion, up 11% - 12% Y/Y and in CC, including slightly above 4pts Informatica contribution • Initiates third quarter FY27 cRPO growth guidance of approximately 14% Y/Y and in CC, which does not include any contribution from the pending acquisitions of Contentful and Fin

11. #11prepared remarks

    • Raises full year FY27 revenue guidance, now expects full year FY27 revenue of $46.1 billion to $46.4 billion, up 11% - 12% Y/Y and 11% in CC, including slightly above 3pts Informatica contribution. The $200M raise, $300 million CC, reflects $100 million of organic growth, $200 million from the pending Contentful and Fin acquisitions, and $100M FX headwind • Raises full year FY27 subscription and support revenue growth guidance to slightly above 12% Y/Y and slightly under 12% in CC, including slightly above 3pts Informatica contribution • Updates full year FY27 GAAP operating margin guidance to 20.1%, and maintains non-GAAP operating margin guidance of 34.3% • Maintains full year FY27 operating cash flow growth guidance and free cash flow growth guidance of approximately 4% - 5% Y/Y • Final settlement of the company's $25 billion ASR is expected in October 2026.

12. #12prepared remarks

    Salesforce's guidance includes GAAP and non-GAAP financial measures. The following tables summarize Salesforce's guidance for the third quarter fiscal 2027 and full-year fiscal 2027: | | | | | | | | | | | | | Q3 FY27 Guidance | | GAAP | | Non-GAAP (1) | Revenue | $11.42 - $11.5 billion | | N/A | Revenue growth (2) | 11% - 12% | | 11% - 12% CC, $0M Y/Y FX | Includes slightly above 4pts Informatica contribution | Diluted net income per share | $1.81 - $1.83 | | $3.42 - $3.44 | Current remaining performance obligation growth (3) | Approximately 14% | | Approximately 14% CC, $100M Y/Y FX |

13. #13prepared remarks

    | | | | | | | | | | | | | Full Year FY27 Guidance | | GAAP | | Non-GAAP (1) | Revenue | $46.1 - $46.4 billion | | N/A | Revenue growth (2) | 11% - 12% | | Approximately 11% CC, $200M Y/Y FX | Includes slightly above 3pts Informatica contribution | Subscription and support revenue growth (4) | Slightly above 12% | | Slightly under 12% CC | Includes slightly above 3pts Informatica contribution | Operating margin | 20.1% | | 34.3% | Diluted net income per share | $10.21 - $10.25 | | $16.67 - $16.71 | Operating cash flow growth | Approximately 4% - 5% | | N/A | Free cash flow growth | N/A | | Approximately 4% - 5% | Capital expenditures | N/A | | Approximately 1.5% of revenue |

14. #14prepared remarks

    (1) Non-GAAP CC revenue growth, non-GAAP CC remaining performance obligation growth, non-GAAP CC subscription and support revenue growth, non-GAAP operating margin, non-GAAP diluted net income per share, and free cash flow growth are non-GAAP financial measures. See below for an explanation of non-GAAP financial measures. The Company's shares used in computing GAAP diluted net income per share guidance and non-GAAP diluted net income per share guidance reflect the reduction to share count from the 103 million shares initially delivered under the ASR, but excludes any impact to share count from the final ASR settlement or potential Q3 - Q4 FY27 open-market repurchase activity under our share repurchase program. (2) Revenue FX impact is calculated by taking the current period rates compared to the prior period average rates. (3) Current remaining performance obligation FX impact is calculated by taking the current period rates compared to the prior period ending rates. (4) Subscription and support revenue excludes professional services revenue.

15. #15prepared remarks

    The following is a reconciliation of GAAP operating margin guidance to non-GAAP operating margin guidance for the full year: | | | | | | | | | | | Full Year FY27 Guidance | GAAP operating margin (1) | | 20.1% | Plus | | | Amortization of purchased intangibles (2) | | 4.4% | Stock-based compensation expense (2)(3) | | 9.0% | Restructuring and acquisition-related costs (2)(3) | | 0.8% | Non-GAAP operating margin (1) | | 34.3% |

16. #16prepared remarks

    (1) GAAP operating margin is the proportion of GAAP income from operations as a percentage of GAAP revenue. Non-GAAP operating margin is the proportion of non-GAAP income from operations as a percentage of GAAP revenue. (2) The percentages shown above have been calculated based on the midpoint of the low and high ends of the revenue guidance for full year FY27. (3) The percentages shown in the restructuring and acquisition-related costs line have been calculated based on charges associated with the Company's restructuring initiatives and acquisition-related costs. Stock-based compensation expense excludes stock-based compensation expense related to the Company's restructuring initiatives, which is included in the restructuring and acquisition-related costs line.

17. #17prepared remarks

    The following is a per share reconciliation of GAAP diluted net income per share to non-GAAP diluted net income per share guidance for the next quarter and the full year: | | | | | | | | | | | | | Fiscal 2027 | | Q3 | | FY27 | GAAP diluted net income per share range (1)(2) | $1.81 - $1.83 | | $10.21 - $10.25 | Plus | | | | Amortization of purchased intangibles | $ | 0.57 | | | $ | 2.45 | | Stock-based compensation expense | $ | 1.29 | | | $ | 4.96 | | Restructuring and acquisition-related costs (3) | $ | 0.12 | | | $ | 0.42 | | Less | | | | Income tax effects and adjustments (4) | $ | (0.37) | | | $ | (1.37) | | Non-GAAP diluted net income per share (2) | $3.42 - $3.44 | | $16.67 - $16.71 | Shares used in computing basic net income per share (millions) (5) | 824 | | | 835 | | Shares used in computing diluted net income per share (millions) (5) | 827 | | | 838 | |

18. #18prepared remarks

    (1) The Company's GAAP tax provision is expected to be approximately 21.8% for the three months ended October 31, 2026 and 22.3% for the year ended January 31, 2027. The GAAP tax rates may fluctuate due to discrete tax items, changes in valuation allowance assessment, future acquisitions, or other transactions. (2) The Company's projected GAAP and non-GAAP diluted net income per share assumes no change to the value of our strategic investment portfolio as it is not possible to forecast future gains and losses. The impact of future gains or losses from the Company’s strategic investment portfolio could be material. (3) The estimated impact to GAAP diluted net income per share is in connection with the Company's restructuring initiatives and acquisition-related costs. (4) The Company’s non-GAAP tax provision uses a long-term projected tax rate of 20.5%, which reflects currently available information and could be subject to change. (5) The Company's shares used in computing GAAP net income per share guidance and non-GAAP net income per share guidance reflect the reduction to share count from the 103 million shares initially delivered under the ASR, but excludes any impact to shar…

19. #19prepared remarks

    For additional information regarding non-GAAP financial measures see the reconciliation of results and related explanations below.

20. #20prepared remarks

    Management will provide further commentary around these guidance assumptions on its earnings call.

21. #21prepared remarks

    Salesforce releases major updates for our core platform and apps three times a year, with additional updates happening regularly across our portfolio. These releases are a result of significant research and development investments made over multiple years, and are designed to help customers drive cost savings, boost efficiency, and build trust.

22. #22prepared remarks

    Salesforce leaders will participate in a Q2 FY27 Product Adoption & Momentum webinar on Tuesday, September 1, 2026, at 8:00 AM PT / 11:00 AM ET. A live webcast and replay details of the event will be available on the Salesforce Investor Relations website at www.salesforce.com/investor.

23. #23prepared remarks

    To learn more about our newest innovations and product release highlights, including our latest Summer 2026 Product Release, see FY27 Q2 Product Releases and Announcements at https://www.salesforce.com/news/stories/fy27-q2-highlights/ and see our latest major release at www.salesforce.com/releases.

24. #24prepared remarks

    Investor Day Salesforce will hold its Investor Day in conjunction with Dreamforce on Wednesday, September 16, 2026, at 1:00 PM PT / 4:00 PM ET at the St. Regis in San Francisco, CA. A live webcast, accompanying presentation, and replay details of the event will be available on the Salesforce Investor Relations website at www.salesforce.com/investor.

25. #25prepared remarks

    Environmental, Social, and Governance (ESG) Strategy To learn more about our latest initiatives and priorities, review our Stakeholder Impact Report at https://salesforce.com/stakeholder-impact-report.

26. #26prepared remarks

    Quarterly Earnings Webcast Salesforce plans to host a live earnings webcast broadcast at 2:00 p.m. (PT) / 5:00 p.m. (ET) to discuss its financial results with the investment community. A live webcast and replay details of the event will be available on the Salesforce Investor Relations website at www.salesforce.com/investor.

27. #27prepared remarks

    About Salesforce Salesforce helps organizations of any size become agentic enterprises - integrating humans, agents, apps, and data on a trusted, unified platform to unlock unprecedented growth and innovation. Visit www.salesforce.com for more information.

28. #28prepared remarks

    Mark Murphy Salesforce Investor Relations investor@salesforce.com

29. #29prepared remarks

    Salesforce Public Relations pr@salesforce.com

30. #30prepared remarks

    "Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements about the Company's financial and operating results and guidance, which include, but are not limited to, expected GAAP and non-GAAP financial and other operating and non-operating results, including revenue, net income, net income per share, operating cash flow growth, operating margin, expected revenue growth, expected foreign currency exchange rate impact, expected current remaining performance obligation growth, expected tax rates or provisions, stock-based compensation expenses, amortization of purchased intangibles, shares outstanding, market growth, strategic investments, expected restructuring expense or charges, expected timing of product releases and enhancements, and expectations regarding closing and contemplated acquisitions and contributions from acquired companies. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties