Salesforce Inc. CRM shares fell Thursday after the company delivered stronger-than-expected fiscal second-quarter results but issued revenue and earnings guidance for the third quarter that came in below Wall Street forecasts.The weaker outlook tempered investor enthusiasm despite continued momentum in Salesforce’s Data Cloud, AI initiatives, and Agentforce platform.Revenue for the quarter reached $10.2 billion, surpassing consensus estimates, while earnings per share came in at $2.91.Also Read: Salesforce ...

Investment Rating - The investment rating for Salesforce Inc. is "Buy" with a 12-month price target of $340, indicating an upside potential of 22.7% from the current price of $277.19 [8][6]. Core Insights - Salesforce reported a Subscription Revenue growth of 8.3% YoY, exceeding the FactSet Consensus of 7.4%. The Operating Margin (OpM) was 32.3%, slightly below the consensus of 32.5% [1]. - The company raised its FY26 Total Revenue guidance to 8.6% YoY in USD and 8% in constant currency (CC), compared to previous guidance of 7.4% and 7.8% [1]. - Key growth drivers include a strong performance in the Data Cloud and AI segment, which reached $1 billion in Annual Recurring Revenue (ARR), growing 120% YoY [1]. - The company closed 8,000 Agentforce deals, including 4,000 paid deals, indicating robust demand [1]. - The Platform and Other segment, which includes Data Cloud and Slack, showed accelerating momentum with a 14% YoY growth [1]. - Current Remaining Performance Obligations (cRPO) grew by 12.1% YoY, with the highest net new dollars added since F1Q23 [1]. - EMEA region showed stabilization with a 9% YoY growth [1]. Summary by Sections Financial Performance - Subscription Revenue for F1Q26 was $9,255 million, with a YoY growth of 8.3% [9]. - Non-GAAP Operating Income was reported at $3,179 million, with an Operating Margin of 32.6% [9]. - Free Cash Flow Margin reached 64.0%, indicating strong cash generation capabilities [9]. Guidance and Expectations - For F2Q26, Salesforce expects Revenue growth of 8.7% in USD and 7.5% in CC, above the consensus of 7.4% [1]. - The company anticipates a Subscription Revenue growth of 9.5% in both USD and CC for FY26, up from previous estimates [1]. Market Dynamics - The report highlights the importance of understanding the Create-and-Close business performance, which reflects the health of small and medium-sized businesses (SMBs) [2]. - The report also emphasizes the need to assess the broader spending environment and demand backdrop, particularly in relation to Data Cloud and Agentforce deals [2].