Salesforce reported fiscal Q2 2027 earnings Wednesday evening that produced the largest adjusted EPS beat in company history, and the stock is up more than 15 percent in Thursday trading as a result.
Revenue came in at $11.35 billion, up 11 percent year over year and in line with the $11.32 billion consensus.
The headline number was the bottom line: adjusted EPS of $5.90 demolished the $3.27 estimate by 80 percent. Net income of $3.53 billion was inflated by approximately $2.6 billion in gains on Salesforce's investment in Anthropic, the AI company now valued at nearly $1 trillion, but the underlying operating performance was also strong, with free cash flow surging 81 percent year over year to $1.1 billion.
The AI story is the reason investors are most excited. Agentforce, Salesforce's AI agent platform that automates complex workflows across sales, service, marketing and more, hit $1.5 billion in annual recurring revenue, up 240 percent year over year.
Agentic workspace units reached 3.2 billion, up 97 percent quarter over quarter. CEO Marc Benioff said Agentforce is "the fastest-growing product in Salesforce's history."
The company raised its full-year revenue guidance to $46.1 to $46.4 billion and lifted adjusted EPS guidance to $11.15 to $11.23. Q3 revenue guidance of $11.42 to $11.50 billion also cleared consensus.
CRM entered Wednesday's session down 22 percent for the year. It has now recovered much of that.