All right. So, let's puzzle through here. I want to do a different kind of interview with Salesforce.I can sit here and say, you know what, you grew 11 on this and 10 on that. Or I can ask you a year from now, are we going to see every company be doing what a William Sonoma is doing or a Reddit is doing. Because if we're just going to pigeon hole you to this high single digit, low double digit, that may be missing the forest through the trees.Well, the absolute number, Jim, is some of the biggest in the sof ...

What do we make of this quarter from Salesforce. The stock dropped after earnings thanks to some concern over guidance. But are we nitpicking.After the close, we got a chance to check in with Mark Benap, the co-founder, chairman, CEO of Salesforce to attempt to figure out what's going on both with the stock and the company. Take a look. >> Mark, welcome back to Bad Buddy.>> Jim, it's great to be with you. Thanks for having me always. All right.So, let's puzzle through here. I want to do a different kind of ...

Financial Data and Key Metrics Changes - The company reported Q2 revenue of $10,250,000,000, representing a 10% year-over-year increase and a 9% increase in constant currency [8][46] - Non-GAAP operating margin was strong at 34.3%, with an increase of 60 basis points year-over-year [9][47] - Current Remaining Performance Obligation (CRPO) ended at $29,400,000,000, up 11% year-over-year [9][47] - Operating cash flow is expected to reach nearly $15,000,000,000, marking a significant increase from the previous quarter [9] Business Line Data and Key Metrics Changes - The AI and data product line saw a remarkable growth of 120% year-over-year [9] - Net new bookings from deals over $1,000,000 grew by 26% year-over-year, indicating strong sales momentum [8] - Subscription and support revenue grew slightly above 9% in constant currency, driven by strong execution [46] Market Data and Key Metrics Changes - Strong new business growth was observed in the U.S. and certain areas of EMEA, particularly the Netherlands and Switzerland, while the UK and Japan faced constraints [48] - Technology and communications sectors performed well, while retail, consumer goods, and public sector showed measured performance [48] Company Strategy and Development Direction - The company is focusing on the concept of the "agentic enterprise," which emphasizes the integration of AI and data capabilities into all products [10][12] - There is a strategic emphasis on expanding the Data Cloud, which is seen as critical for the success of AI agents [26][27] - The company is also expanding its presence in the public sector and launching new products like the AgenTic IT service platform [30][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a record year, with strong momentum and disciplined execution [45] - The company is optimistic about the future of AI and its integration into enterprise software, viewing it as a transformative opportunity [71][92] - Management highlighted the importance of customer success and operational excellence as key drivers for future growth [45][52] Other Important Information - The company has returned $2,600,000,000 to shareholders through buybacks and dividends in Q2, with a total of nearly $27,000,000,000 returned since the program began [54] - The company raised its fiscal year '26 revenue guidance to a range of $41,100,000,000 to $41,300,000, reflecting an expected growth of approximately 8.5% to 9% year-over-year [55][56] Q&A Session Summary Question: How defensible is SaaS against disruption from AI-native apps? - Management acknowledged the transformation in the software industry driven by AI, emphasizing that Salesforce has been integrating AI for over a decade and is well-positioned to extend its SaaS capabilities [63][70] Question: When will Data Cloud and Agent Force inflect the top line? - Management indicated that they are starting to harvest the benefits of investments in products and are confident in their strategy to monetize AI [72] Question: What caused the 60% increase in pilot to production conversions? - Management explained that close collaboration with customers and enhancements in product features have facilitated faster transitions from pilot to production [78][81]

Salesforce (CRM) Q2 2026 Earnings Call September 03, 2025 05:00 PM ET Speaker0Good afternoon, everyone. My name is Leila, and I will be your conference operator today. At this time, I would like to welcome you to the Salesforce second quarter fiscal twenty twenty six conference call. This conference is being recorded, and all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.At this time, I would like to turn the call ove ...