Salesforce, Inc. Q2 FY2026 earnings call

• Marc Benioff highlighted strong Q2 results, noting revenue, margin, cash flow, CRPO, and AI/data cloud growth. The agentic enterprise is the future, with agents working alongside humans in sales, service, field service, marketing, and commerce. Examples of customers like Dell, Marriott, DIRECTV, and the US Army were cited, showcasing agent force and data cloud impact. - Robin Washington discussed customer success, data and AI adoption, operational excellence (e.g., expanding 24/7 instant support to 6 new languages), and capital allocation, including a $20 billion share repurchase authorization and acquisitions like Convergence AI, Bluebirds, Y, and Regrelo. - Focus on public sector and ITSM as key growth areas, with plans to launch an AgenTic IT service platform natively embedded in Slack.

Salesforce reported Q2 revenue of $10.25 billion, up 10% year over year and 9% in constant currency. Subscription and support revenue grew slightly above 9% in constant currency. Non-GAAP operating margin was 34.3%. CRPO ended at $29.4 billion, up 11% year over year. The AI and data product line saw a 120% year-over-year increase. Geographically, strong new business growth was in the US and pockets of EMEA (Netherlands, Switzerland), while the UK and Japan were constrained. Segment-wise, small and mid-market business performed well. Industry-wise, technology and comms/media did well, while retail/consumer goods and public sector were more measured.

• Raised the low end of fiscal 2026 revenue guidance to $41.1 billion to $41.3 billion (8.5%-9% growth in nominal, 8% in constant currency). - Raised non-GAAP operating margin to 34.1% and operating cash flow guidance to 12%-13%. - Q3 revenue expected to be $10.24 billion to $10.29 billion (8%-9% growth in nominal, 8% in constant currency), with CRPO growth slightly above 10% year over year, inclusive of a $300 million FX tailwind.

Q: One for you, Mark. A debate that has surfaced lately is a sense outlived its long run? Tech cycles have rarely lasted this long. So how defensible is SaaS, particularly the category that you're in within SaaS? Against disruption from AI native apps and maybe custom built AI.

A: Marc Benioff stated Salesforce has been AI-driven for over a decade, and the agentic enterprise with humans and agents working together is the future. He emphasized Salesforce's lead in combining large language models with enterprise software, citing examples like help.salesforce.com and AgentForce. Robin Washington added on monetizing AI and optimizing platform usage.

Q: Keith Weiss asked about the 60% increase in pilot production. What was the technology or implementation catalyst causing that increase?

A: Srini Talabhrigada and Miguel Milano discussed how customers are moving from pilots to production due to features like determinism in agents, observability via agent force command center, and deep integration with data cloud. Examples like DirecTV and Falabella were given, showing rapid pilot-to-production conversions leveraging data cloud and agent force.

Q: Brent Thill asked about the $20 billion addition to the buyback and strategy balance with M&A.

A: Marc Benioff stated they use cash flow for buybacks, dividends, and inorganic innovation, citing acquisitions like Regrelo and the importance of data cloud, MuleSoft, and Informatica as the AI foundation. Robin Washington confirmed a balanced approach with disciplined M&A and shareholder value return.

Q: Mark Murphy asked about why other software companies haven't seen the breakthrough in support role reduction like Salesforce, and repurposing sales roles.

A: Marc Benioff attributed it to timing, market FUD, and fear. He highlighted Salesforce's clarity on the agentic enterprise as a radical transformation involving both software and organizational change, with examples from customer meetings showing the impact of agent force and data cloud.

Q: Raimo Lenschow asked about confidence in growth outlook with more sales guys and agent help.

A: Miguel Milano responded by highlighting strong booking acceleration, refilling tank by customers (e.g., Falabella), and the scale of digital labor with agent force and data cloud, expressing confidence in future growth driven by these initiatives.