🚀 Salesforce surprised Wall Street. AI is starting to deliver results

Salesforce $CRM has just had one of its most important quarters in recent times. The company showed further revenue growth and profitability, but above all the first significant signs that its investments in artificial intelligence are beginning to produce concrete results.

So what was the most interesting thing about the results?

📈 Revenue continues to grow

Salesforce reported revenue of approximately 11.35 billion dollars, representing year-over-year growth of 11%.

The core part of the business, namely subscription and support, generated 10.8 billion dollars, up 12% year over year. Part of the growth, however, already comes from the Informatica acquisition, which contributed approximately 456 million dollars to quarterly revenue.

A much more interesting number, however, can be found in future contracted revenue.

💰 Salesforce has tens of billions of dollars under contract

Current Remaining Performance Obligation, or cRPO, reached 33.5 billion dollars and grew 14% year over year in constant currency.

This is the value of contracts that Salesforce has already signed with customers and for which it expects to recognize revenue over the next 12 months.

Total RPO then reached 66.3 billion dollars, up 11% year over year.

In my view, cRPO growth is one of the most positive points of the results. It shows that demand for Salesforce products remains strong and the company has very good visibility into future revenue.

Management also said that growth in net new annual recurring revenue was the strongest in four years.

🤖 Agentforce is finally starting to make money

The biggest question around Salesforce in recent quarters has been AI.

The company talked about Agentforce at practically every opportunity, but investors wanted to see something other than the number of AI agents – they wanted to see money.

And that is exactly where a significant shift came.

Agentforce and Data 360 reached ARR of almost 3.9 billion dollars, representing year-over-year growth of more than 210%.

Agentforce alone surpassed 1.5 billion dollars in ARR and grew more than 240% year over year.

Bookings for premium products Agentforce One Edition and Agentforce for Apps more than doubled quarter over quarter.

So AI is no longer just a story for investors. It is gradually becoming a real source of revenue for Salesforce.

🤝 Salesforce teams up with Anthropic

Another important announcement was the expansion of its partnership with Anthropic.

Salesforce introduced Claudeforce, which connects Claude models with Salesforce data and enterprise tools.

And this is where Salesforce may have one of its biggest competitive advantages.

The company does not have to develop the best AI model in the world. Its advantage is the enormous amount of enterprise data, existing customer relationships, and deep integration into their daily processes.

If it can connect the best AI models with this data foundation, it could be one of the significant winners of AI adoption in companies.

⚠️ Profit soared, but beware of one number

At first glance, the profitability results look fantastic.

GAAP EPS reached 4.29 dollars, up 119% year over year, while non-GAAP EPS reached 5.90 dollars, which meant growth of more than 100%.

Here, however, one needs to be cautious.

The results were significantly affected by gains from Salesforce's strategic investments. These added approximately 2.53 dollars per share.

After subtracting them, adjusted EPS would have been approximately 3.37 dollars.

The core business certainly did not grow by 100%. Headline EPS this time looks significantly better than the actual growth of the operating business.

Margins, however, remain positive – non-GAAP operating margin reached 34.1%.

💵 Free cash flow rose by 81%

The strong quarter was also reflected in cash flow.

Operating cash flow reached 1.3 billion dollars, up 71% year over year, while free cash flow grew 81% to 1.1 billion dollars.

Salesforce also continues to return capital to shareholders through dividends and a massive share buyback program.

🔮 Management raises guidance

Salesforce now expects fiscal year 2027 revenue between 46.1 and 46.4 billion dollars, which corresponds to year-over-year growth of approximately 11–12%.

Previous guidance called for 45.9 to 46.2 billion dollars.

Part of the increase in guidance, however, comes from planned acquisitions, so it is necessary to separate organic growth from growth through M&A.

For the next quarter, management also expects cRPO to continue growing around 14%.

🎯 What do I take away from the results?

In my view, Salesforce delivered a very strong quarter.

Not because EPS jumped more than 100%, because that number was significantly affected by investment gains.

Three things are much more important:

📌 cRPO is growing 14% and shows strong demand and future contracted revenue.

📌 Agentforce and Data 360 are approaching 4 billion dollars in ARR, and AI is beginning to turn from a story into a real business.

📌 Salesforce combines double-digit revenue growth, high margins, and strong cash generation.

Risks, of course, have not disappeared. Salesforce's organic growth is still not extreme, part of the growth comes from acquisitions, and the company must prove over time that Agentforce can significantly accelerate growth of the entire enterprise.

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The last quarter, however, brought further evidence that AI can be a real new growth engine for Salesforce, not just a marketing story. 🚀