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A maker of cloud-based customer relationship management software, Salesforce helps businesses of all sizes track sales, service, marketing, and more through its Agentforce 360 platform, which also includes Slack, Tableau, and MuleSoft. Founded in 1999 by former Oracle executive Marc Benioff, it got its start in a one-bedroom San Francisco apartment. In 2000, Benioff hired actors to stage a fake "No Software" protest outside a rival's conference, a stunt that put the young startup on the map.
Salesforce Q2 FY2027 revenue rose 11% to $11.3B, while EPS rose on strategic investment gains and a $25B buyback.
Salesforce's Q2 FY2027 rose 11% to $11.3B, but the quarter's defining number is of $4.29, up 118.9% , driven by $2.87 per share in and $0.57 from the $25B . was flat at $2.3B as higher hosting, generative AI, and acquisition-related costs pushed cost of revenues to 23% of revenue. The company is now carrying $39.3B in and a $11.3B strategic investment portfolio, with two more acquisitions pending.
Key takeaways
rose 118.9% to $4.29, boosted by $2.87 per share from and $0.57 from the $25B .
rose 10.8% to $11.3B, driven by volume from new business rather than pricing, with subscription and support up 12% to $10.8B.
was flat at $2.3B as cost of revenues rose to 23% of on higher hosting, generative AI, and acquisition-related costs.
Section summaries
Management's Discussion and Analysis
Salesforce Q2 FY2027 revenue rose 11% to $11.3B, with EPS boosted by strategic investment gains and a $25B buyback.
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Total for the three months ended July 31, 2026 was $11.3B, up 11% , driven by volume from new business rather than pricing.
Total rose 11% to $66.3B, signaling future contracted .
The company expects to close acquisitions of Contentful for about $1.5B and Intercom (Fin) for about $3.6B in Q3 FY2027.
The strategic investment portfolio reached $11.3B across over 450 companies, including approximately $5.1B in Anthropic.
What changed
Total growth stayed at 11% in Q2 FY2027, unchanged from Q1's 11% and below the 14% reported in FY2026, against the $66.3B base.
fell to 20.5% from 21.1% in Q1 FY2027, as cost of revenues rose to 23% of on higher hosting, generative AI, and acquisition-related costs.
remained at $39.3B, the level reached in Q1 FY2027 after the $25B senior notes and $6B term loan issuance, while rose 12.1% to $38.4B from $34.2B.
The strategic investment portfolio rose to $11.3B from $6.4B at Q3 FY2026, with approximately $5.1B now in Anthropic.
fell 81.1% quarter over quarter to $1,269M, following the $6,701M reported in Q1 FY2027.
What to watch
Close of the Contentful ($1.5B) and Intercom (Fin) ($3.6B) acquisitions in Q3 FY2027 and their effect on and debt.
Total in Q3 FY2027 against the $66.3B base to see if growth re-accelerates above 11%.
in Q3 FY2027 as generative AI and acquisition-related costs continue against the 20.5% base.
Pace of the $25B and its effect on diluted share count and in Q3.
Subscription and support grew 12% to $10.8B in Q2, with Apps up 8% and , Headless Platform, and Other up 20%.
was $2.3B in Q2, roughly flat , as cost of revenues rose to 23% of on higher hosting, generative AI, and acquisition-related costs.
for the first six months was $6.67 versus $3.55 a year ago, boosted by $2.87 per share from strategic investment gains and $0.57 from the $25B .
Cash provided by operations for the first six months was $8.0B, up 10% , while total rose 11% to $66.3B.
The company expects to close acquisitions of Contentful for about $1.5B and Intercom (Fin) for about $3.6B in Q3 FY2027, subject to regulatory approvals.
Quantitative and Qualitative Disclosures About Market Risk
Market risk spans FX, interest rates, and a $11.3B strategic investment portfolio, with FX hedged via short-term forwards.
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Foreign currency exposure arises from multi-currency subscriptions, , intercompany arrangements, and international infrastructure, with key currencies including the Euro, British Pound, Japanese Yen, Canadian Dollar, Australian Dollar, Indian Rupee, and Brazilian Real.
The company uses short-term foreign currency forward contracts, including cash flow hedges on forecasted , to reduce FX volatility; all contracts mature within twelve months and do not fully eliminate currency impact.
FX fluctuations minimally impacted total for the three months ended July 31, 2026 and minimally impacted growth versus .
As of July 31, 2026, cash, cash equivalents, and marketable securities totaled $11.4 billion, invested mainly in money market funds, time deposits, corporate notes and bonds, and government securities rated BBB or better.
A 100 immediate interest rate change at July 31, 2026 could change the fixed-income portfolio's market value by approximately $36 million, up from $31 million at January 31, 2026.
The strategic investment portfolio had a of $11.3 billion across over 450 companies, including approximately $5.1 billion in Anthropic; a 10% decline in of the five largest private holdings could reduce carrying value by about $641 million.
We evaluate all claims and lawsuits with respect to their potential merits, our potential defenses and counterclaims, settlement or litigation potential and the expected effect on us. Our technologies may be subject to an injunction if they are found to infringe the rights of a…
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We evaluate all claims and lawsuits with respect to their potential merits, our potential defenses and counterclaims, settlement or litigation potential and the expected effect on us. Our technologies may be subject to an injunction if they are found to infringe the rights of a third party. In addition, many of our subscription agreements require us to indemnify our customers for third-party intellectual property infringement claims, which could increase the cost to us of an adverse ruling on such a claim.
The outcome of any claims or litigation, regardless of the merits, is inherently uncertain. Any claims and other lawsuits, and the disposition of such claims and lawsuits, whether through settlement or litigation, could be time-consuming and expensive to resolve, divert our attention from executing our business plan, result in efforts to enjoin our activities, lead to attempts by third parties to seek similar claims and, in the case of intellectual property claims, require us to change our technology, change our business practices, pay monetary damages or enter into short- or long-term royalty or licensing agreements.
For more information regarding legal proceedings see Note 12 “Legal Proceedings and Claims” to the condensed consolidated financial statements in Item 1 of Part I.
Salesforce's Q2 FY2027 risk factors center on AI-related security, adoption, and regulatory uncertainty, plus heavy new debt from the Informatica acquisition.
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Cybersecurity is the lead operational risk, with the company warning that AI is letting threat actors find zero-day vulnerabilities and automate multi-stage attacks faster than defenses can respond.
AI-specific risks are newly emphasized across security, product reliability, competition, ethics, and regulation, including unpredictable agentic AI behavior and possible suspension of access to frontier models.
The acquisition drove major new : a $6.0 billion term loan in March 2026 and $25.0 billion of March 2026 Notes, partly used to fund an .
Consumption-based offerings such as and carry uncertain monetization and pricing, making renewals and harder to forecast.
Evolving privacy and AI laws, including the EU AI Act, GDPR, CCPA, and DORA, plus cross-border data transfer uncertainty, could raise compliance costs and restrict service delivery.
The company faces ongoing litigation exposure, including the Dutch Privacy Collective GDPR case and securities class action and derivative claims inherited from the acquisition.