Salesforce (CRM) Q2 2026 Earnings Release

Salesforce ($CRM) shares dipped in after-hours trading Wednesday, despite the company exceeding expectations for both earnings and revenue in its fiscal second quarter. The market reaction stems from a weaker-than-anticipated outlook, raising concerns about the efficacy of its AI integration and its ability to reignite growth momentum.

Here’s a closer look at the key figures compared to LSEG consensus estimates:

• Earnings per share: $2.91 adjusted vs. $2.78 expected
• Revenue: $10.24 billion vs. $10.14 billion expected

Salesforce reported a 10% increase in revenue from $9.33 billion in the same period last year. Net income saw a substantial rise, reaching $1.89 billion, or $1.96 per share, up from $1.43 billion, or $1.47 per share, year-over-year.

However, the forward-looking guidance painted a less optimistic picture. For the fiscal third quarter, Salesforce projects adjusted earnings per share of $2.84 to $2.86 on revenue of $10.24 billion to $10.29 billion. This falls slightly short of the LSEG consensus, which predicted $2.85 per share on $10.29 billion in revenue. This seemingly minor miss is amplified by the market’s intense scrutiny of growth stocks, particularly within the tech sector.

While Salesforce maintained its full-year revenue outlook, it revised upward its sights for earnings. The company now anticipates adjusted earnings per share of $11.33 to $11.37 on revenue of $41.1 billion to $41.3 billion. Previously, the forecast anticipated $11.27 to $11.33 in adjusted earnings per share. The LSEG consensus estimate stood at $11.31 in earnings per share and $41.2 billion in revenue.

Salesforce has been facing increasing investor skepticism throughout the year, primarily due to decelerating revenue growth. With growth rates stubbornly remaining in the single digits since mid-2024, the market has questioned whether the company’s sizable investments in artificial intelligence are translating into tangible benefits and competitive advantage. This is particularly poignant given the substantial gains experienced by other tech giants in the AI space. While Salesforce trumpets its AI advancements and software improvements, it has yet to benefit significantly from the widespread AI enthusiasm.

Prior to the earnings release, Salesforce shares had already fallen by 23% year-to-date, underperforming the vast majority of the Dow and other large-cap technology companies. This decline underscores the pressure on Salesforce to demonstrate a clear path towards accelerated growth and profitable AI integration.

Analysts at Jefferies highlight the company’s enterprise value to free cash flow ratio, which has sunk to a 10-year low, reflecting concerns about AI disruption and the potential for new entrants to challenge Salesforce’s dominance. The company is attempting to address these threats through its Agentforce AI software, designed to automate customer service functions and improve efficiency. However, the market remains cautious about its potential impact.

During the fiscal second quarter, Salesforce announced plans to increase prices for certain products. Additionally, it revealed its intention to acquire data management software company Informatica for $8 billion. This strategic acquisition aims to bolster Salesforce’s data integration capabilities and potentially unlock new opportunities within the Customer 360 platform. However, the deal also raises questions about integration risk and whether the acquisition will ultimately drive meaningful growth.

Investors and analysts will be closely monitoring the details shared on the conference call, seeking insight into Salesforce’s AI strategy, the integration of Informatica, and the company’s plans to reignite growth in a increasingly competitive cloud landscape. The market is demanding concrete evidence that Salesforce can successfully navigate the challenges ahead and capitalize on the transformative potential of artificial intelligence.