Salesforce Q2 revenue slightly beats on demand for AI and data products
Salesforce Q2 revenue slightly beats on demand for AI and data products
Overview
US cloud software firm's Q2 revenue grew, slightly beating analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company raised full-year FY27 revenue guidance by $200 mln
Outlook
Salesforce raises full-year FY27 revenue guidance to $46.1 bln-$46.4 bln, up 11%-12% Y/Y
Company initiates Q3 FY27 revenue guidance of $11.42 bln-$11.5 bln, up 11%-12% Y/Y
Salesforce expects reduced currency tailwind for FY27 due to a stronger U.S. dollar
Result Drivers
AI AND DATA DEMAND - Co said strong demand for AI and data products drove Q2 growth, with AI-related ARR nearing $4 bln
AGENTFORCE AND DATA 360 GROWTH - Agentforce and Data 360 ARR rose over 210% Y/Y, with Agentforce ARR up over 240% Y/Y and work units delivered up 97% Q/Q
INFORMATICA CONTRIBUTION - Informatica acquisitions contributed $456 mln to Q2 revenue
Company press release: ID:nBw9BN7Jja
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Beat* | $11.35 bln | $11.32 bln (40 Analysts) |
Q2 Adjusted EPS | Beat | $5.90 | $3.27 (41 Analysts) |
Q2 EPS |
| $4.29 |
|
Q2 Adjusted Operating Margin |
| 34.10% |
|
Q2 Operating Margin |
| 20.50% |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 41 "strong buy" or "buy", 12 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Salesforce, Inc. is $240.50, about 16.9% above its August 25 closing price of $205.69
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)