salesforce(US:CRM) The Motley Fool·2025-09-07 08:52Core Viewpoint - Salesforce reported strong fiscal Q2 2026 results, exceeding analyst expectations, but the stock declined due to unchanged high-end revenue guidance, raising investor concerns about AI's impact on its business model [1][2] Financial Performance - Revenue increased by 10% year over year to $10.23 billion, surpassing guidance of $10.11 billion to $10.16 billion [6] - Subscription and support revenue rose 11% to $9.69 billion, while platform sales grew 16% [6] - Adjusted earnings per share (EPS) increased 14% to $2.91, exceeding analyst consensus of $2.78 [8] - Operating cash flow was $740 million, and free cash flow was $605 million, with $15.4 billion in cash and short-term investments [9] Growth Drivers - The Agentforce platform has over 6,000 paid deals, with a 60% sequential increase in customers moving to full production [4] - Data Cloud's annual recurring revenue surged 120% year over year to $1.2 billion, with a 140% increase in customers [5] Future Outlook - Remaining performance obligations rose 11% year over year to $29.64 billion, indicating future revenue potential [10] - The company slightly increased the low end of its full-year revenue outlook to $41.1 billion to $41.3 billion [10] - For fiscal Q3, revenue is forecasted to rise by 8% to 9%, with adjusted EPS expected between $2.84 and $2.86 [10] Market Sentiment - Investor sentiment has driven Salesforce's stock to low valuations, with a forward price-to-sales multiple of 5 and a PEG ratio below 0.5, indicating potential undervaluation [14] - The company is adapting to AI trends by reducing its customer service headcount and focusing on AI agents [11][12]