Salesforce (NYSE: CRM) cleared the bar with ease. Revenue and earnings both beat consensus.
Revenue of $11.3 billion rose 11% year over year, topping the $11.33 billion estimate. Non-GAAP diluted EPS of $5.90 more than doubled from $2.91 a year ago and crushed the $3.27 consensus. The real signal, however, is the acceleration in forward-looking demand metrics. The AI narrative is translating into signed contracts.
Current remaining performance obligation (cRPO) grew 14% in constant currency, the fastest pace in four years. That’s a meaningful jump from 13% last quarter and 10% a year ago. cRPO hit $33.5 billion, with total RPO at $66.3 billion. These aren’t just accounting lines; they represent contracted revenue waiting to be recognized. Management credits AI and data products. Agentforce ARR surpassed $1.5 billion, up over 240% year over year. Combined AI and data ARR is approaching $3.9 billion, an increase of over 210%.
The EPS beat got a boost from a $2.6 billion net gain on strategic investments, adding about $2.53 to GAAP diluted EPS. Strip that out, and non-GAAP operating margin of 34.1% was essentially flat versus 34.3% a year ago. Underlying operating leverage is stable, not expanding. The company kept its full-year non-GAAP operating margin guidance at 34.3%, signaling it sees the current cost structure as sustainable.
Full-year revenue guidance was raised by $200 million to a range of $46.1 billion to $46.4 billion, for 11% to 12% growth. The composition of that raise is key. $100 million came from organic strength, $200 million from the pending acquisitions of Contentful and Fin, and a stronger U.S. dollar erased $100 million. In constant currency, the raise was $300 million. The organic contribution is real but modest. The acquisitions aren’t closed yet. Q3 revenue guidance was set at $11.42 billion to $11.5 billion. The midpoint implies roughly 11.5% growth, in line with the full-year trajectory.
Operating cash flow jumped 71% year over year to $1.3 billion. Free cash flow rose 81% to $1.1 billion. Those are strong numbers, yet full-year guidance for operating cash flow growth of just 4% to 5% suggests Q2 benefited from timing or one-time items. The company returned $364 million in dividends and kept executing its $25 billion accelerated share repurchase program, with final settlement expected in October. The ASR has already cut the diluted share count to 821 million from 962 million a year ago, a 15% reduction that mechanically boosted per-share metrics.
The AI and data ARR numbers are the most important forward-looking data points here. Agentforce ARR crossed $1.5 billion. Salesforce delivered 3.2 billion Agentic Work Units in Q2 alone, up 97% sequentially. Data 360 ingested 104 trillion records, a 355% year-over-year surge. These metrics will determine if Salesforce can sustain its growth reacceleration into fiscal 2028. The cRPO acceleration is encouraging. Still, Q3 cRPO growth guidance of approximately 14% implies no further acceleration from the Q2 level. That’s not a negative, but it suggests the pace of improvement may be plateauing.
A clean beat with strong demand signals. The guidance raise, however, was modest and partly acquisition-driven. The AI story now has real contract data to back it up; the cRPO acceleration is the strongest evidence yet that the strategy is gaining traction. The question for the back half of the year is whether organic revenue reacceleration materializes as management expects, or if the current pace of growth is a ceiling, not a floor.