Salesforce Q2 2026 Earnings: Steady Growth and AI Traction, but Muted Market Reaction
Salesforce grew revenue and profit in the quarter ended July 31, 2025, powered by subscription growth and early traction from its Agentforce AI push, but shares slipped as investors weighed the pace of AI payback.
| Q2 2026 | Reported |
|---|---|
| EPS | $1.96 |
| Revenue | $10.24B |
Figures as reported by the company to the SEC for the quarter ended July 31, 2025. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Growth was driven mainly by the core subscription and support business (the recurring fees customers pay for Salesforce’s cloud software), which rose 11% from a year earlier to about $9.7 billion; a smaller professional-services and consulting segment shrank slightly, continuing a trend of that side of the business fading in importance.
- Data Cloud and AI-related annual recurring revenue passed $1.2 billion, more than doubling from a year ago, and the company’s AI product Agentforce has closed over 12,500 deals since launch, more than 6,000 of them paid — an early sign that Salesforce’s heavy AI investment is starting to generate meaningful sales.
- Current remaining performance obligation — the value of contracted revenue Salesforce expects to recognize over the next 12 months, a proxy for near-term demand — grew 11% year over year to $29.4 billion, pointing to a healthy order backlog.
- Profitability held up well: the adjusted operating margin expanded to 34.3%, and the company’s trailing-twelve-month gross margin of about 78% shows Salesforce keeps a large share of each subscription dollar after delivering the service, leaving room to invest in AI while still growing profit.
- Salesforce raised the low end of its full-year revenue guidance to $41.1–$41.3 billion (8.5%–9% growth) and lifted its full-year operating margin outlook to 34.1%, while pointing to nearly $15 billion in expected operating cash flow for the fiscal year — cash the business generates that it can use for buybacks, acquisitions or paying down debt.
- Despite the solid quarter, shares fell roughly 4% in after-hours trading, as investors focused less on the results themselves and more on how quickly Salesforce’s AI investments will translate into faster growth.
- CEO Marc Benioff called it ‘an outstanding quarter to close out the first half of the year,’ pointing to strength in revenue, margin, cash flow and contracted backlog, and cited customers including Pfizer, Marriott and the U.S. Army as examples of clients using Agentforce to blend human and AI-agent work.
- Coverage noted that while cloud companies like Salesforce are showing AI products can generate real bookings, some investors remain focused on the pace of returns from years of AI spending against a backdrop of a cautious macroeconomic environment.
Q2 2026 in context
| Metric | Jul 2025 | Jul 2024 | Change |
|---|---|---|---|
| Revenue | $10.2B | $9.3B | +9.8% |
| Net income | $1.9B | $1.4B | +32.1% |
| Free cash flow | $605M | $755M | -19.9% |
| Diluted EPS | $1.96 | $1.47 | +33.3% |
| Gross margin | 78.1% | 76.8% | +1.2 pts |
| Operating margin | 22.8% | 19.1% | +3.7 pts |
| Net margin | 18.4% | 15.3% | +3.1 pts |
Figures for the quarter ended Jul 2025 and the quarter ended Jul 2024, as reported to the SEC.
How the stock took it
Salesforce Inc closed at $256.45 on Sep 3, 2025, the last session before the report, and at $250.76 on Sep 5, 2025, the first session after it — -2.2% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · CNBC · Salesforce Ben