Key Moments
- Salesforce (NYSE: CRM) shares advanced 11% in U.S. premarket trading after quarterly results beat Wall Street forecasts.
- Adjusted EPS of $5.90 and revenue of $11.35 billion both exceeded analyst estimates, with revenue up 11% year-over-year.
- The company raised its fiscal 2027 revenue and EPS guidance and reported rapid growth in key AI-related recurring revenue streams.
Blowout Quarter Fuels Premarket Rally
Salesforce (NYSE: CRM) delivered quarterly financial results that surpassed analyst expectations, propelled by rising demand for its artificial intelligence offerings. The performance sent the enterprise software provider’s stock up 11% in premarket U.S. trading on Thursday.
Adjusted earnings per share came in at $5.90, significantly ahead of the consensus estimate of $3.27. Revenue increased 11% from the same period a year earlier to $11.35 billion, slightly above projections of $11.33 billion.
“We just delivered one of our best quarters ever, outperforming across every key metric,” said CEO Marc Benioff in a statement. “AI is delivering value across every layer of our platform. We’re seeing incredible demand for our AI and data products, with ARR about to cross $4 billion.”
Upgraded Fiscal 2027 Outlook
On the back of the strong quarter, the San Francisco-based company lifted its full-year fiscal 2027 revenue guidance. Salesforce now anticipates revenue between $46.1 billion and $46.4 billion, compared with its previous range of $45.9 billion to $46.2 billion. The new midpoint of $46.25 billion stands above the analyst consensus of $46.11 billion.
Full-year adjusted EPS guidance was also sharply increased. Management now expects adjusted EPS of $16.67-$16.71, up from the prior range of $14.06 to $14.12 and well ahead of forecasts of $14.16.
Third-Quarter Projections
For the third quarter, Salesforce projected revenue of $11.42 billion to $11.5 billion. The midpoint of $11.46 billion is slightly higher than the consensus estimate of $11.42 billion.
The company forecast third-quarter adjusted EPS in a range of $3.42-$3.44, compared with analyst expectations of $3.39.
| Metric | New Guidance / Result | Prior Guidance / Consensus |
|---|---|---|
| Quarterly adjusted EPS | $5.90 | $3.27 (estimate) |
| Quarterly revenue | $11.35 billion | $11.33 billion (estimate) |
| Fiscal 2027 revenue | $46.1-$46.4 billion (midpoint $46.25 billion) | $45.9-$46.2 billion prior; $46.11 billion consensus |
| Fiscal 2027 adjusted EPS | $16.67-$16.71 | $14.06-$14.12 prior; $14.16 forecast |
| Q3 revenue outlook | $11.42-$11.5 billion (midpoint $11.46 billion) | $11.42 billion consensus |
| Q3 adjusted EPS outlook | $3.42-$3.44 | $3.39 estimate |
AI Products Drive Recurring Revenue Growth
Salesforce highlighted strong traction in its AI-focused offerings. Agentforce and Data 360 combined annual recurring revenue approached $3.9 billion, representing growth of over 210% year-over-year. Within that, Agentforce annual recurring revenue surpassed $1.5 billion, expanding more than 240%.
Current remaining performance obligation rose 14% to $33.5 billion, underscoring the strength of contracted future business.
Profitability and Cash Flow Metrics Improve
The company reported an adjusted operating margin of 34.1% for the quarter. Operating cash flow increased 71% to $1.3 billion, reflecting improved efficiency and cash generation.
Analyst Perspective on Growth Trajectory
Analysts at Raymond James noted that Salesforce reiterated its expectation that growth metrics should re-accelerate in the second half of its 2027 fiscal year.
“The news comes in stark contrast to other front-office software vendors that referenced extended sales cycles through 2026, and points to potential advantages for Salesforce,” the analysts wrote.
Expanded Partnership with Anthropic
Alongside its earnings update, Salesforce announced a broader collaboration with AI startup Anthropic. The two companies plan to jointly develop “Claudeforce,” which they described as a system that will link Anthropic’s advanced plug-ins with Salesforce’s portfolio of business tools.
Select pilot customers now have access to the new offering, and the firms intend to release a beta version next month.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
