European Investor
27 Aug 2026, 09:54
Salesforce Jumps 13% Premarket as AI Growth Accelerates and FY27 Outlook Rises
Salesforce (NYSE: CRM) shares are up about 13% in premarket trading after the software giant delivered record fiscal second-quarter results, with accelerating bookings, rapid AI growth and a higher full-year revenue outlook.
Revenue rose 11% year over year to $11.3 billion, while subscription and support revenue increased 12% to $10.8 billion. More importantly for investors, current remaining performance obligations (cRPO), a key indicator of future contracted revenue, climbed 14% to $33.5 billion.
Profitability was particularly strong. Non-GAAP operating margin reached 34.1%, while non-GAAP EPS more than doubled to $5.90. Free cash flow increased 81% to $1.1 billion.
AI growth emerges as a major catalyst
Salesforce's AI business is scaling rapidly. Agentforce and Data 360 ARR approached $3.9 billion, up more than 210% year over year, while Agentforce ARR surpassed $1.5 billion, growing more than 240%.
Management also said net new annual order value growth was the strongest in four years, supporting expectations for organic revenue growth to reaccelerate during the second half.
Salesforce raised FY27 revenue guidance to $46.1 billion-$46.4 billion, representing 11%-12% growth. The company also expects Q3 revenue of $11.42 billion-$11.50 billion and cRPO growth of approximately 14%.
The 13% premarket rally appears to reflect a combination of accelerating contracted revenue, exceptional Agentforce growth, expanding profitability and signs that Salesforce's AI investments are translating into meaningful commercial demand.
Salesforce (NYSE: CRM) shares are up about 13% in premarket trading after the software giant delivered record fiscal second-quarter results, with accelerating bookings, rapid AI growth and a higher full-year revenue outlook.
Revenue rose 11% year over year to $11.3 billion, while subscription and support revenue increased 12% to $10.8 billion. More importantly for investors, current remaining performance obligations (cRPO), a key indicator of future contracted revenue, climbed 14% to $33.5 billion.
Profitability was particularly strong. Non-GAAP operating margin reached 34.1%, while non-GAAP EPS more than doubled to $5.90. Free cash flow increased 81% to $1.1 billion.
AI growth emerges as a major catalyst
Salesforce's AI business is scaling rapidly. Agentforce and Data 360 ARR approached $3.9 billion, up more than 210% year over year, while Agentforce ARR surpassed $1.5 billion, growing more than 240%.
Management also said net new annual order value growth was the strongest in four years, supporting expectations for organic revenue growth to reaccelerate during the second half.
Salesforce raised FY27 revenue guidance to $46.1 billion-$46.4 billion, representing 11%-12% growth. The company also expects Q3 revenue of $11.42 billion-$11.50 billion and cRPO growth of approximately 14%.
The 13% premarket rally appears to reflect a combination of accelerating contracted revenue, exceptional Agentforce growth, expanding profitability and signs that Salesforce's AI investments are translating into meaningful commercial demand.
