Core Viewpoint - Salesforce's stock experienced a significant drop despite favorable Q2 results, raising questions about its investment potential amid slower growth and high expectations [1][2]. Financial Performance - Q2 sales reached $10.23 billion, a 10% increase from $9.32 billion year-over-year, surpassing estimates of $10.13 billion [3]. - Q2 earnings per share (EPS) were $2.91, up 13% from $2.56 a year ago, exceeding expectations of $2.77 by 5% [3]. - Revenue from AI and data products surged 120% year-over-year, indicating strong performance in this segment [4]. Operational Highlights - Salesforce reported a non-GAAP operating margin of 34.3% and a Current Remaining Performance Obligation (CRPO) of $29.4 billion, reflecting an 11% increase [4]. - The company secured deals with major clients including Dell, Marriott, U.S. Bank, the U.S. Army, and Lululemon [5]. Future Guidance - Salesforce raised its full-year revenue guidance to between $41.1 billion and $41.3 billion, indicating approximately 8.5%-9% growth [7]. - The company expects to achieve nearly $15 billion in operating cash flow for FY26, with growth forecasted at 12%-13% [7]. Valuation Metrics - Salesforce stock is currently trading at a forward P/E ratio of 22X, below the S&P 500's 24X and the industry average of 25X [10]. - The stock is trading at a 43% discount to its 3-year median of 39X forward earnings, significantly lower than its peak of 75X during this period [10]. Investment Consideration - The company's ability to leverage AI and compete against rivals like Microsoft makes investing in Salesforce stock increasingly attractive, although there may be better buying opportunities in the future [11].

Core Viewpoint - Salesforce's CRM AI initiatives are underperforming, particularly in light of its stock performance in 2025 and recent guidance [1] Financial Performance - Salesforce's Q2 revenue reached $10.24 billion, a 10% year-over-year increase, slightly exceeding analyst expectations [3] - Adjusted earnings per share (EPS) for Q2 were $2.91, beating estimates by 4.7% [3] - For Q3, Salesforce guided revenue between $10.24 billion and $10.29 billion, slightly below the $10.29 billion estimate, and adjusted EPS guidance is set at $2.84 to $2.86, compared to the $2.85 estimate [4] Stock Performance - Salesforce's stock has declined 28% year-to-date, underperforming competitors like SAP, Microsoft, and Oracle, which have shown strong gains in 2025 [2] - Following the quarterly results, several analysts lowered their price targets for Salesforce, contributing to further stock declines [4] AI Investments - Salesforce's AI investments are described as "multi-billion" dollar initiatives for 2025, particularly associated with the Agentforce and Einstein platforms, though specific figures for total AI spending have not been disclosed [5] - The company has integrated AI features across its platform but acknowledges that it will take time for these investments to yield measurable returns, as indicated by the recent revenue growth [6] Market Sentiment - Analysts and investors are urging Salesforce to demonstrate results from its significant AI investments in upcoming quarters [6] - The overall sentiment around Salesforce's AI revolution is waning, with revenue growth stagnating and AI innovations not yet making a significant impact on profitability [7]

Salesforce Inc. CRM posted better-than-expected results for the second quarter and raised its FY2026 guidance. However, the company issued third-quarter sales guidance with its midpoint below estimates.Salesforce reported second-quarter revenue of $10.24 billion, beating the consensus estimate of $10.14 billion, according to Benzinga Pro. The company reported second-quarter adjusted earnings of $2.91 per share, beating analyst estimates of $2.78 per share.Salesforce expects third-quarter revenue to be in th ...

Core Insights - Salesforce Inc. reported stronger-than-expected fiscal second-quarter results, with revenue reaching $10.2 billion and earnings per share at $2.91, but issued a cautious revenue and earnings guidance for the third quarter that fell below Wall Street forecasts [1][3] - The company experienced an 11% growth in current remaining performance obligations (cRPO), driven by contributions from Sales and Service Cloud and a significant increase in Agentforce customers [2][8] - Despite the quarterly performance, management maintained its fiscal 2026 revenue guidance at $41.1–$41.3 billion and EPS at $11.33–$11.37, indicating a cautious growth outlook [3] Financial Performance - Revenue for the quarter was $10.2 billion, exceeding consensus estimates, while annual recurring revenue from Data Cloud and AI products reached $1.2 billion [1][2] - Operating margins were reported at 34.3%, with a constant-currency revenue growth of 9% [5] - The company expanded its share repurchase program by $20 billion, reflecting a commitment to capital returns [3] Analyst Ratings and Insights - Needham analyst Scott Berg reiterated a Buy rating with a price target of $400, noting a 20% year-over-year increase in sales headcount as a potential future growth driver [4] - Canaccord Genuity's David Hynes maintained a Buy rating but reduced his price target from $350 to $300, describing the quarter as "steady, not spectacular" [5] - KeyBanc's Jackson Ader reiterated an Overweight rating while lowering his price target from $440 to $400, highlighting strong subscription growth and the upcoming Dreamforce event as a potential catalyst [6] Growth Drivers - Salesforce's Data Cloud and Agentforce saw a robust 120% year-over-year growth in annual recurring revenue, with a 50% sequential growth in paid users for Agentforce [5][6] - The number of enterprises piloting Agentforce increased significantly from 20 to 120, with a 60% quarter-over-quarter conversion rate [8] - Analysts anticipate an AI-driven acceleration in sales, with Bank of America Securities' Brad Sills maintaining a Buy rating and a price target of $325 [7][8]

Core Insights - Salesforce's stock experienced a significant decline despite beating earnings estimates, indicating that investor expectations were not met [1][4]. Financial Performance - In the second quarter, Salesforce reported earnings of $2.91 per share, surpassing Wall Street's expectation of $2.78 per share, which reflects an increase of approximately 8.6% year over year [3]. - The company's revenue reached $10.2 billion, exceeding the anticipated $10.1 billion and representing an 8.7% increase [3]. Future Guidance - Management provided full-year guidance targets that are slightly above current analyst projections, indicating a "beat-and-raise" performance [4]. Investor Expectations - Investors were likely seeking stronger guidance related to Salesforce's artificial intelligence (AI) initiatives, particularly after CEO Marc Benioff announced a significant shift towards AI tools in customer support [5]. - The expectation for cost-cutting through AI was not met, as the company is redeploying customer support staff into sales and marketing roles rather than laying them off [6].

Top of the morning. I'm Y Finance executive editor Brian Sazi and you're taking a look at a live shot of the opening bells on Wall Street on this Thursday morning. Vontobell Asset Management ringing the bell at the New York Stock Exchange.Idea Bioscience is getting things underway over at the NASDAQ. Uh there is a little something for bulls and bears alike today. Investors are watching President Trump's Fed pick Steven Myron go through the confirmation process.How things go here could keep upward pressure o ...

Core Insights - Salesforce (CRM) reported second-quarter fiscal 2026 non-GAAP earnings of $2.91 per share, exceeding the Zacks Consensus Estimate by 5.1%, with a year-over-year improvement of 13.7% [1][7] - The company's fiscal second-quarter revenues reached $10.2 billion, surpassing the Zacks Consensus Estimate by 1.02%, and reflecting a 10% year-over-year increase [1][7] Revenue Performance - The growth in both top and bottom lines was attributed to CRM's go-to-market strategy and a strong focus on customer success, alongside the integration of generative artificial intelligence (AI) into its offerings [2] - Subscription and Support revenues, which account for 94.8% of total revenues, increased by 11% year over year to $9.7 billion, while Professional Services and Other revenues declined by 3% to $546 million [3] - Within the Subscription and Support segment, Sales Cloud revenues grew 8% to $2.3 billion, Service Cloud revenues increased 8% to $2.5 billion, Marketing & Commerce Cloud revenues rose 3% to $1.4 billion, and Platform & Other revenues were up 16% to $2.1 billion [4] Geographic Performance - Revenues from the Americas, which represent 65.5% of total revenues, increased by 9% year over year to $6.74 billion, while EMEA revenues grew by 7% to $2.4 billion, and Asia Pacific revenues rose by 11% to $1.1 billion [5] Financial Metrics - Non-GAAP operating income was reported at $3.51 billion, a 12% increase from the previous year, with a non-GAAP operating margin expansion of 60 basis points to 34.3% [5] - The company ended the quarter with cash, cash equivalents, and marketable securities totaling $15.37 billion, down from $17.41 billion in the previous quarter [5] Future Guidance - For the third quarter of fiscal 2026, Salesforce projects total sales between $10.24 billion and $10.29 billion, indicating an 8-9% growth from the previous year [6] - The company has raised its fiscal 2026 revenue guidance to a range of $41.1 billion to $41.3 billion, reflecting an 8.5-9% year-over-year increase [9] - Non-GAAP earnings per share for fiscal 2026 are now expected to be in the range of $11.33 to $11.37, slightly higher than previous forecasts [10]

Core Insights - Salesforce, Inc. (NYSE: CRM) significantly exceeded analysts' consensus expectations for both earnings and revenue in the second fiscal quarter [1] Financial Performance - The company demonstrated strong momentum in its operations, contributing to the positive financial results [1]

Group 1 - Salesforce, Inc. is a leading company in cloud-based software, highlighted by its prominent Salesforce tower in San Francisco [1] - The company is recognized for its comprehensive suite of services, catering to various business needs [1] - The focus of the analysis is on identifying undervalued companies with strong fundamentals and cash flows, particularly in sectors like Oil & Gas and consumer goods [1] Group 2 - The analysis emphasizes long-term value investing while also exploring potential deal arbitrage opportunities in various sectors [1] - The author expresses a preference for businesses that are easily understandable, avoiding high-tech and certain consumer goods sectors [1] - There is a clear skepticism towards investing in cryptocurrencies, indicating a focus on traditional investment avenues [1]

Core Insights - Salesforce Inc (NYSE: CRM) reported second-quarter revenue of $10.24 billion and earnings of $2.91 per share, exceeding estimates, but lower-than-expected revenue guidance for the next quarter has raised concerns [1] - The stock has experienced a significant decline of 34.9% over the past nine months, marking a stark reversal from its record highs in December 2024 [2] - Despite recent price cuts from at least nine firms, including a notable reduction from Bernstein to $221, 36 out of 50 firms still maintain a "strong buy" rating on the stock [3] Stock Performance - Salesforce shares fell by 7.9% to $236.23, potentially marking the worst session of the year [1][2] - The stock has dropped below its 20-day moving average, with $235 acting as a critical support level [2] Market Sentiment - Options traders are showing a bullish sentiment, with a call/put ratio of 1.88, indicating a preference for call options [3] - A significant volume of options trading has been observed, with 93,000 calls traded compared to 60,000 puts, suggesting traders are betting on a potential recovery [3] Volatility and Performance - Salesforce has historically outperformed volatility expectations, as indicated by a Schaeffer's Volatility Scorecard (SVS) score of 78 out of 100 [4]