Salesforce Q2 Earnings Surpass Estimates, Revenues Rise Y/Y

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]