Executive Summary
Salesforce delivered a solid QQ2 2026 performance anchored by top-line strength and margin expansion, underscored by the rapid adoption of AI-enabled capabilities and the agentic enterprise framework. Revenue reached $10.236 billion, up 10% year-over-year (nominal) and 9% in constant currency, with non-GAAP operating margin at 34.3% and CRPO at $29.4 billion, up 11% YoY. The execution was broad-based across clouds, with data/AI driving the expansion in bookings and a sizable contribution from existing customers expanding their usage. Salesforce raised the low end of FY2026 revenue guidance to $41.1–$41.3 billion and highlighted a path toward a record year, supported by an acceleration in data cloud and AgentForce deployments, a robust cash flow profile, and a disciplined capital allocation framework.
Management emphasized the strategic transition to an Agentic Enterprise, stating that humans and agents will work together on a unified data fabric to dramatically increase productivity, customer outcomes, and operating efficiency. The company pointed to strong early success in the data cloud and agent force consumption, a growing set of multi-cloud wins, and expanding addressable markets including SMB/mid-market, public sector, and ITSM. While the near-term growth trajectory remains dependent on AI adoption, product integrations, and macro conditions, the company continues to invest aggressively in product, go-to-market, and select acquisitions to broaden its AI/data foundation.
Key takeaways for investors include: (1) a durable margin expansion trajectory ending FY2026 at higher non-GAAP and GAAP margins versus prior cycles, (2) sustained free cash flow growth aided by tax tailwinds and disciplined capex, (3) a sizable data cloud/AI stack driving large-ticket deals and a higher-quality revenue base, and (4) a clear strategic plan for inorganic growth via targeted acquisitions and a strengthening buyback/dividend program.
Key Performance Indicators
Key Insights
Revenue: $10.236B in Q2 2026, up 10% YoY (nominal) and 9% in constant currency. Gross Profit: $7.994B; Gross Margin: 78.1%.
Operating Income: $2.332B; Operating Margin: 22.78% (GAAP).
Net Income: $1.887B; Net Margin: 18.43%. EPS: $1.97 (GAAP); Diluted $1.96.
CRPO: $29.4B, up 11% YoY and up ~10% CC.
Data Cloud ARR: $1.2B, up 120% YoY; >60 deals >$1M in the quarter; Data Cloud usage driven by 140% YoY growth in customers and 326% growth in rows accessed via zero-copy integration.
Agent Forc...
Financial Highlights
Revenue: $10.236B in Q2 2026, up 10% YoY (nominal) and 9% in constant currency. Gross Profit: $7.994B; Gross Margin: 78.1%.
Operating Income: $2.332B; Operating Margin: 22.78% (GAAP).
Net Income: $1.887B; Net Margin: 18.43%. EPS: $1.97 (GAAP); Diluted $1.96.
CRPO: $29.4B, up 11% YoY and up ~10% CC.
Data Cloud ARR: $1.2B, up 120% YoY; >60 deals >$1M in the quarter; Data Cloud usage driven by 140% YoY growth in customers and 326% growth in rows accessed via zero-copy integration.
Agent Force: 40% of agent force bookings from existing customers; Flex credits now account for ~80% of Q2 new bookings (post-launch).
Profitability and cash flow: Non-GAAP operating margin +60 bps QoQ; GAAP operating margin +370 bps QoQ (Q2). Operating cash flow: $740M; Capex: $135M; Free cash flow: $605M.
Balance sheet: Cash & short-term investments $15.372B; Cash at end of period $10.365B; Net debt of -$7.564B; Deferred revenue $16.556B; Total current liabilities $22.532B; Total assets $97.573B; Total stockholders’ equity $61.328B.
Guidance: FY2026 revenue is guided to $41.1B–$41.3B; FX tailwind of ~$300M; Non-GAAP operating margin guidance ~34.1%; Capex ~<2% of revenue; OCF growth guidance 12–13%; Q3 revenue guidance $10.24B–$10.29B; Q3 CRPO growth slightly above 10% nominal (about 9% CC).
Key qualitative takeaways from the transcript include strong management emphasis on the Agentic Enterprise, Data Cloud integration, and the pivotal role of AI-enabled automation in sustaining growth, as highlighted by Marc Benioff and Robin Washington.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
10.24B |
9.77% |
4.14% |
| Gross Profit |
7.99B |
11.55% |
5.68% |
| Operating Income |
2.33B |
30.79% |
20.08% |
| Net Income |
1.89B |
32.05% |
22.45% |
| EPS |
1.97 |
33.11% |
22.36% |
Management Commentary
Theme: Strategy and AI-led transformation
- Quote 1 (Marc Benioff): The agentic enterprise has arrived; humans and agents working together with every decision grounded in trusted data. This framing anchors Salesforce’s product and market strategy and sets the narrative for the Dreamforce launch window.
- Quote 2 (Marc Benioff): We are rebuilding every single one of our products to be agentic, delivering hundreds of products at Dreamforce, and showcasing large customer deployments as proof points for the Agentic Enterprise thesis.
Theme: Operations, execution, and capital allocation
- Robin Washington on operational excellence and margin expansion, noting 10th straight quarter of operating margin expansion and a disciplined capex/outlay strategy, including a $20B expansion of the buyback authorization.
- Management highlighted a diversified, services-led growth engine with Data Cloud and Agent Force as the backbone for AI-driven growth; 24x7 instant support expansion and Slack-first ITSM as examples of internal and external efficiency gains.
Theme: Customer wins and deployment progress
- Customer examples include Dell, Lennar, Falabella, DirectTV, FedEx, and US Army, with multiple cases of pilot-to-production transitions and large-scale deployments in data cloud and agent force.
- The management narrative emphasizes that the bulk of incremental growth in bookings is driven by existing customers expanding usage (40% of Agent Force/Data Cloud bookings coming from existing customers).
The agentic enterprise has arrived. Humans and agents working together with every decision grounded in trusted data.
— Marc Benioff
We are rebuilding every single one of our products to be agentic.
— Marc Benioff
Forward Guidance
Outlook and achievability: Salesforce raised FY2026 revenue guidance to $41.1B–$41.3B, implying growth of approximately 8.5%–9% YoY on nominal terms, with 8% CC growth. FX tailwinds added ~$0.3B to the top line. The company reaffirmed subscription and support growth around 9% YoY (CC), with ongoing strength in Data Cloud and Agent Force, offset by softer marketing and commerce and slower growth in the exploration base. Non-GAAP operating margin is guided at 34.1%, and GAAP margin at 21.2% after expected restructuring charges; Capex ~2% of revenue supports a Free Cash Flow growth target of 12%–13% for the year, aided by tax savings from the recent tax policy.
Near-term drivers: Continued acceleration of Data Cloud and Agent Force bookings, expansion in SMB/mid-market segments, and government/ITSM adjacencies. The company also signaled an aggressive inorganic growth agenda via acquisitions (Convergence AI, Bluebirds, Y; Regrello for talent/tech; Informatica timing). Management expects a robust H2 with a pipeline in the high-teens for overall bookings and double-digit growth in larger deals. Investors should monitor: (1) progress on Informatica closing and integration into the AI/Data foundation, (2) the pace of ITSM development inside Slack and customer uptake, (3) the durability of the pilot-to-production conversion rate, and (4) macro conditions affecting IT budgets, especially in enterprise and public sector sectors.
Key factors investors should monitor: deployment velocity of Agent Force across clouds, data cloud adoption across Fortune 500 and mid-market segments, and the sustainability of free cash flow expansion given ongoing R&D and M&A activity.