CRM US S&P 500DJIARussell 1000 Earnings call
Salesforce (CRM) · Q2 2026 results and valuation
Share price: $218.01 · 2026-11-11
Salesforce provides customer relationship management technology and a unified platform for sales, service, marketing, and data management. The company offers its software and tools to businesses of all sizes globally, primarily on a subscription basis. Source: 10-K annual report (2026-03-02)
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q2 2027 · published 26 Aug 2026 and 27 May 2026
Net income up 67.3% on the previous quarter. Management sounded restrained, in its script and in answers to analysts.
1 · Numbers
+67.3%
Net income vs Q1 2026
Outlook given
Net income 3.53B vs 2.11B
Revenue +1.9%
Against the same quarter last year (Q2 2025) it is +86.9%, so it is not just seasonal.
2 · How management spoke
Restrained
Less upbeat than 71% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Agentforce ARR reached $1.5 billion, driven by Slackbot and Headless launches and continued AI momentum.
Valuation
Is Salesforce undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-01-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 9.8% growth a year (3-year revenue growth), the model's fair value is $371.16 a share — the stock trades 41% below it. Today's price assumes 3.4% growth a year.
Current price
$218.01
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+3.4% for 10 yrs
Fair value / share
$371.16
Buy below
$278.37
Price vs fair value
Undervalued 41%
Price vs buy-below price
Undervalued 22%
Read between the lines
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Guidance
Q2 revenue reached $11.35 billion, up 11% year-over-year, exceeding the high end of guidance due to momentum in Slack and Agentforce.
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Figure
The company generated $1.1 billion in free cash flow during the quarter.
Source quote
“We generated $1.1 billion in free cash flow.”
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Guidance
CRM expects to repurchase at least 14% of shares outstanding through its program at an average price of $176 per share.
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Key theme
Q3 cRPO growth is expected to be approximately 14% year-over-year in constant currency.
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Figure
The company grew rapidly by expanding from roughly 600 to more than 1,500 employees in just 6 months.
Source quote
“And it's growing rapidly, expanding from roughly 600 to more than 1,500 employees in just 6 months.”
4 more
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Figure
Agentforce ARR reached $1.5 billion, driven by Slackbot and Headless launches and continued AI momentum.
Source quote
“Agentforce ARR reached $1.5 billion, as you heard, driven by Slackbot and Headless launches and continued AI momentum.”
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Figure
A1E and A4X bookings more than doubled quarter-over-quarter as customers are upgrading.
Source quote
“But what Miguel will about to tell you is they're upgrading, and A1E and A4X bookings, they more than doubled quarter-over-quarter.”
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Guidance
The company raised its guidance and committed to organic revenue acceleration in Q3.
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Key theme
Customers are unlocking more value and consumption is growing at an incredible pace.
Source quote
“Consumption is growing at an incredible pace and customers are unlocking more value than ever before.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Agentforce Apps delivered solid growth, anchored in momentum in Slack and resilience in sales and service with early signs of recovery in marketing.”
“In closing, building on the momentum from a strong first half, we are delivering record revenue and cash flows this year.”
“So our opportunity to continue to upgrade our customers to those premium additions that gives them instantaneous access to this innovation is an amazing future opportunity for us.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-07-31)
| Metric | Q2 2026period end 2026-07-31 | Q1 2026period end 2026-04-30 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 11.35B | 11.13B | +1.9% | 10.24B | +10.8% |
| Gross profit | 8.70B | 8.56B | +1.6% | 7.99B | +8.8% |
| Operating income | 2.33B | 2.35B | −0.7% | 2.33B | ±0% |
| Net income | 3.53B | 2.11B | +67.3% | 1.89B | +86.9% |
| EPS | 4.29 | 2.42 | +77.3% | 1.96 | +118.9% |
| P/E today 19.6 | 16.9 | 20.5 | −3.6 | 37.5 | −20.6 |
Topics
Most discussed now
- These are different reasoning engines, entirely different interfaces, but underneath all 3 is the same trusted foundation, Salesforce.
- What's especially interesting is that they're taking different approaches to AI.
- It sounds like this internally named agent, Lucy, is not just stopping at service because now you're starting to build...
- There's one more that is worth highlighting, which is Salesforce's ability to really nurture leads and procure more leads.
- I appreciate what Salesforce does for it in enabling us to surface clean data upon which to build agents and...
Faded since Q1 2026
- Fading Since Salesforce brought CRM into the cloud, it is just seeing tremendous new innovation every single day.
- Fading Salesforce has delivered record revenue, record deals, and just incredible cash flow.
- Fading Salesforce's largest applications, sales and service, saw year over year seat growth with...
- Fading I wanna update you on Salesforce's capital allocation strategy, which as Marc said, is driving long term shareholder value.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K
Salesforce, Inc. posted an investor presentation on September 16, 2026, containing information on financial performance, guidance, growth targets, and projections.
- Director or officer change · SEC 8-K
On September 2, 2026, Salesforce, Inc. approved the Executive Deferred Compensation Plan, allowing eligible employees to defer up to 75% of base salary and 90% of annual performance bonuses.
- Results of operations · SEC 8-K
Salesforce reported revenue of $11.3 billion, up 11% year-over-year, and current remaining performance obligation of $33.5 billion, up 14% year-over-year in constant currency.
- Director or officer change · SEC 8-K
Srini Tallapragada will step down as President and Chief Engineering and Customer Success Officer on August 6, 2026, transitioning to a Special Advisor role until August 6, 2027.
- Director or officer change · SEC 8-K
Guy Wanger was appointed as Chief Accounting Officer of Salesforce, Inc. effective June 15, 2026, with an initial annual base salary of $700,000 and a $2 million sign-on bonus.
- Director or officer change · SEC 8-K
Salesforce stockholders approved an amendment to the 2013 Equity Incentive Plan to increase the number of shares reserved for issuance by 34 million and extend the term to March 26, 2036.
- Results of operations · SEC 8-K
Salesforce reported first quarter fiscal 2027 revenue of $11.1 billion, up 13% year-over-year, with GAAP diluted net income per share of $2.42, up 52% year-over-year.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-11.
Cash & runway
Cash & equivalents
$8.31B
2026-07-31
Short-term investments
$3.09B
Long-term investments
$901.2M
total liquidity $12.30B
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: -14.2% YoY, -5.5% QoQ.
| Quarter | Shares |
|---|---|
| Q4 2024 | 956.0M |
| Q2 2025 | 960.0M |
| Q3 2025 | 956.0M |
| Q4 2025 | 948.0M |
| Q2 2026 | 868.0M |
| Q3 2026 | 820.0M |
Shares outstanding: 823.0M (2026-08-20)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 117 filings; 50 filings parsed.
Sold by insiders
4.5K shares
$1.2M · 2 transactions
Bought by insiders
6.7K shares
$1.5M · 3 transactions
Net direction
net buying
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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this year
hiring hundreds of legal engineers
Source quote
“And now we're hiring hundreds of legal engineers this year alone.”
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by the end of this year
build a sales organization north of 200 people
Source quote
“Then on the Agentforce side of the house, I had to go build a sales organization north of 200 people by the end of this year.”
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in the coming weeks
closing of strategic acquisitions, especially Contentful and Fin
Source quote
“With this strong performance and momentum and the strategic acquisitions, especially Contentful and Fin, we're expecting to close in the coming weeks, and we're raising our fiscal year '27 revenue guidance by about $300 million in constant currency.”
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within 2 weeks
60% more leads and converting
Source quote
“now 6 weeks to launch within 2 weeks, 60% more leads and converting.”
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within days, not months
start delivering value
Source quote
“So they can start delivering value within days, not months.”