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 Viewpoint - Salesforce's recent quarterly results indicate a stable performance with most key metrics meeting or slightly exceeding expectations, but revenue growth remains stagnant and profit margin expansion has stalled [1][6]. Revenue Growth - Subscription revenue grew by 8.3% year-over-year, slightly above the expected 7.4%, showing initial signs of stabilization. However, constant currency growth remained flat at 9%, indicating no significant improvement [1][2]. - Traditional IT spending areas such as sales, customer service, and marketing continue to show weak growth, reflecting a lack of enthusiasm in IT budget allocations among European and American companies due to economic concerns and tariff impacts [1][2]. AI and Cloud Performance - The platform cloud and data analytics segments, which are more closely related to AI, performed significantly better, exceeding expectations by approximately 5 percentage points and 4 percentage points, respectively [2]. - The growth in platform cloud is likely driven by increased corporate spending on AI, despite overall IT budgets not increasing [2]. Leading Indicators - The nominal year-over-year growth rate of cRPO (contracted revenue not yet recognized) was 12.1%, appearing to accelerate compared to the previous quarter. However, this was primarily due to favorable currency effects, with constant currency growth remaining at 11% [3]. Profit Margins - Gross profit for subscription revenue was $7.67 billion, a year-over-year increase of 9.4%. However, this was below expectations, and the growth rate showed signs of slowing [3][4]. - The subscription business's gross margin decreased by 0.5 percentage points quarter-over-quarter, with year-over-year growth narrowing to less than 1 percentage point, indicating a stagnation in the upward trend of gross margins [4]. Expense Management - Total operating expenses were $5.62 billion, a year-over-year increase of 6.8%, which was lower than revenue growth, leading to a slight decrease in the expense ratio by approximately 0.4 percentage points [3][4]. - Marketing expenses, the largest component of total expenses, were $3.43 billion, growing by 5.9%, without significant increases due to AI promotions [3]. Operating Profit - Operating profit increased by 13.6% year-over-year to $1.94 billion, with a slight margin improvement of 1.2 percentage points. However, the rate of profit margin expansion has significantly slowed compared to previous fiscal years [4][5]. Cash Flow - Free cash flow for the quarter was approximately $6.3 billion, exceeding market expectations of $5.89 billion, but only reflecting a 4% year-over-year growth, indicating the company is in an investment cycle [4][5]. Guidance - For the next quarter, Salesforce guided revenue growth at 8% to 9% in constant currency, which is better than market expectations but does not indicate significant acceleration [4][5].

Core Insights - Salesforce (CRM) reported first-quarter fiscal 2026 non-GAAP earnings of $2.58 per share, exceeding the Zacks Consensus Estimate by 1.6%, with a year-over-year improvement of 5.7% [1] - The company's fiscal first-quarter revenues reached $9.83 billion, surpassing the Zacks Consensus Estimate by 0.95%, and reflecting a year-over-year increase of 7.7% [1][2] Financial Performance - Revenues from Subscription and Support, which account for 94.6% of total revenues, increased 8.3% year over year to $9.3 billion, while Professional Services and Other revenues decreased 3% to $532 million [3] - Non-GAAP operating income rose 8.6% to $3.17 billion, with the non-GAAP operating margin expanding by 20 basis points to 32.3% [6] Segment Performance - Sales Cloud revenues grew 7% year over year to $2.1 billion, Service Cloud revenues increased 7% to $2.3 billion, Marketing & Commerce Cloud revenues rose 4% to $1.3 billion, and Platform & Other revenues were up 14% to $2.0 billion [4] - Revenues from the Integration and Analytics division grew 10% year over year to $1.5 billion [4] Geographic Performance - Revenues from the Americas, which represent 66.3% of total revenues, increased 7% year over year to $6.5 billion, while EMEA revenues grew 9% to $2.3 billion and Asia Pacific revenues rose 11% to $1.0 billion [5] Cash Flow and Balance Sheet - Salesforce ended the fiscal first quarter with cash, cash equivalents, and marketable securities totaling $17.41 billion, up from $14 billion in the previous quarter [7] - The company generated an operating cash flow of $6.5 billion and a free cash flow of $6.3 billion during the quarter [7] Future Guidance - For Q2 fiscal 2026, Salesforce projects total sales between $10.11 billion and $10.16 billion, indicating 8-9% growth year over year, with a consensus estimate currently at $10.02 billion [9] - The company anticipates non-GAAP earnings per share in the range of $2.76-$2.78 for Q2, with a consensus mark of $2.72, reflecting a year-over-year growth of 6.3% [10] - For fiscal 2026, Salesforce expects revenues between $41 billion and $41.3 billion, an increase from the previous guidance of $40.5-$40.9 billion [10][11]

Salesforce (CRM) reported fourth-quarter fiscal 2025 non-GAAP earnings of $2.78 per share, which beat the Zacks Consensus Estimate by 6.9%. The bottom line increased from the year-ago quarter’s earnings of $2.29 per share by 21.4%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.CRM’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing the same on one occasion, with an average surprise being 4.4%.Salesforce’s fiscal fourth-quarter revenues of $9.9 ...