Salesforce 8-K

PositiveEarningsGuidance raised

A strategic-investment gain boosted GAAP EPS; raised FY27 revenue guidance assumes Contentful and Fin acquisitions close.

Filed 2026-08-26 16:03 ET

Summary

Q2 FY2027 results with Q3 and full-year guidance. Revenue rose 11% Y/Y, while GAAP diluted EPS more than doubled, including a $2.61B gain on strategic investments. Salesforce raised FY27 revenue guidance by $200M ($300M in constant currency); updated guidance incorporates the pending Contentful and Fin acquisitions, conditional on both closing.

Key Figures

Metric Q2 FY27 Q2 FY26 Y/Y
Revenue $11.3B $10.2B 11%
Subscription and support revenue $10.8B $9.69B 12%
Operating income $2.33B $2.33B 0%
Net income, GAAP $3.53B $1.89B 87%
Net income, non-GAAP $4.84B $2.80B 73%
Diluted EPS, GAAP $4.29 $1.96 119%
Diluted EPS, non-GAAP $5.90 $2.91 103%
Operating cash flow $1.27B $740M 71%
Free cash flow, non-GAAP $1.10B $605M 81%
cRPO $33.5B $29.4B 14% CC
  • The $2.61B strategic-investment gain drove much of the increase in GAAP net income; it added $2.43 to GAAP diluted EPS. GAAP operating margin was 20.5% vs 22.8%; non-GAAP margin was 34.1% vs 34.3%.
  • Cash and cash equivalents were $8.31B at quarter-end; balance-sheet debt was $39.3B, following $24.8B of net debt issuance proceeds during H1.
  • H1 share repurchases were $27.3B vs $4.86B a year earlier; Q2 diluted shares were 821M vs 962M. Q2 dividends were $364M.

Guidance

Metric Period Guidance Prior Direction
Revenue, GAAP Q3 FY27 $11.42-$11.5B; 11%-12% Y/Y — Initiated
Revenue growth, non-GAAP CC Q3 FY27 11%-12% CC; $0M Y/Y FX — —
Diluted EPS, GAAP Q3 FY27 $1.81-$1.83 — —
Diluted EPS, non-GAAP Q3 FY27 $3.42-$3.44 — —
cRPO growth, non-GAAP CC Q3 FY27 ≈14% CC; $100M Y/Y FX — Initiated
Revenue, GAAP FY2027 $46.1-$46.4B; 11%-12% Y/Y — Raised
Revenue growth, non-GAAP CC FY2027 ≈11% CC; $200M Y/Y FX — —
Subscription and support revenue growth, GAAP FY2027 Slightly above 12% Y/Y — Raised
Subscription and support revenue growth, non-GAAP CC FY2027 Slightly under 12% CC — —
Operating margin, GAAP FY2027 20.1% — —
Operating margin, non-GAAP FY2027 34.3% — Reaffirmed
Diluted EPS, GAAP FY2027 $10.21-$10.25 — —
Diluted EPS, non-GAAP FY2027 $16.67-$16.71 — —
Operating cash flow growth, GAAP FY2027 ≈4%-5% Y/Y — Reaffirmed
Free cash flow growth, non-GAAP FY2027 ≈4%-5% Y/Y — Reaffirmed
Capital expenditures, non-GAAP guidance table FY2027 ≈1.5% of revenue — —

Investor Takeaways

  • Watch for Contentful and Fin to close independently in Q3 FY2027; FY27 guidance depends on both transactions closing.
  • Q3 revenue and cRPO versus guidance will indicate whether growth sustains the momentum reflected in current contracted obligations.
  • The final settlement of the $25B accelerated share repurchase is expected in October 2026.

The summary is written by an AI model reading the filing.

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