Salesforce raised its annual revenue forecast on Aug 26 following a strong second-quarter performance and expanding adoption of its AI-powered tools, sending shares up 12% in extended trading.
Salesforce now expects fiscal 2027 revenue between $46.1 billion and $46.4 billion, up from its prior outlook of $45.9 billion to $46.2 billion. The company also increased its adjusted earnings per share forecast to $16.67–$16.71, reflecting a reduction in share count. Revenue for the quarter ended July 31 grew 11% to $11.35 billion, exceeding analyst expectations of $11.32 billion.
The company announced an expanded partnership with Anthropic, introducing Claudeforce, a plugin integrating Anthropic’s Claude AI models with Salesforce’s enterprise platform. Claudeforce enables sales teams to automate tasks such as composing emails, retrieving customer data, and updating records through natural language interactions. CEO Marc Benioff highlighted $4 billion in annual recurring revenue from AI and data products, calling the demand for autonomous agents a major growth driver.
Net income for the quarter rose 87% to $3.53 billion, or $4.29 per share, compared with $1.89 billion, or $1.96 per share, a year earlier. Salesforce also reported a $2.6 billion gain on strategic investments, including its stake in Anthropic, which was valued at $965 billion in its latest funding round. Free cash flow increased 81% to $1.10 billion.
Salesforce’s guidance for the fiscal third quarter calls for revenue between $11.42 billion and $11.50 billion, above the $11.41 billion consensus. For the full year, the company projects 11% revenue growth at the midpoint of its updated range.
Industry analysts noted that Salesforce’s AI tools, including Headless 360 and Slackbot, are helping customers extract more value from their data. Rebecca Wettemann, CEO of Valoir, said these products create new ways to access traditional Salesforce applications, enhancing productivity.
Benioff dismissed concerns about a so-called “SaaSpocalypse”, arguing that AI models like Claude depend on Salesforce’s CRM platform rather than replacing it. He cited data showing that nine of the 10 leading AI companies use Salesforce and Slack, with spending on these platforms up 435% year over year. Benioff also pointed to strong growth in products like Agentforce, Sales Cloud, Service Cloud, and Slack, as well as near-record-low customer attrition.
The company’s stock had fallen 19% year-to-date before Wednesday’s earnings, but shares surged 14% in extended trading following the report and guidance. Analysts had previously warned that AI agents could reduce the need for traditional software subscriptions, threatening the subscription-based revenue model of companies like Salesforce. Benioff countered that the latest results demonstrate AI is strengthening rather than cannibalizing the business.