Salesforce Booked $11.3 Billion in the July Quarter and Lifted Its Full-Year Range by $200 Million
Salesforce reported results for its fiscal second quarter, the three months ended July 31, 2026, in a press release dated Aug. 26. Total revenue was $11.3 billion, up 11% from a year earlier both as reported and in constant currency.
Part of that growth is bought rather than built. The company disclosed that the quarter's total included $456 million of revenue from Informatica, the data management business it has folded in. Subscription and support revenue, the larger of Salesforce's two reported lines, was $10.8 billion, up 12% year over year and 11% in constant currency, and included $440 million from Informatica.
The backlog measure investors watch
Current remaining performance obligation, the portion of contracted revenue Salesforce expects to recognize over the next twelve months, stood at $33.5 billion at quarter end, up 14% year over year both as reported and in constant currency. Total remaining performance obligation was $66.3 billion, up 11%.
That cRPO figure is the number software investors typically treat as the cleanest read on forward demand, because it reflects signed commitments rather than revenue already recognized. It grew faster than reported revenue in the quarter.
Margins and per-share results
GAAP operating margin was 20.5% and non-GAAP operating margin was 34.1%. GAAP diluted earnings per share came in at $4.29, which the company said was up 119% from a year earlier, and non-GAAP diluted EPS was $5.90, up 103%.
Cash generation rose steeply against the year-ago quarter. Operating cash flow was $1.3 billion, up 71% year over year, and free cash flow was $1.1 billion, up 81%. Both are second-quarter figures and the release does not annualise them.
On capital returns, Salesforce said it paid $364 million in dividends during the quarter and pointed to a $25 billion accelerated share repurchase program under which 103 million shares have been delivered, with final settlement expected in October 2026.
AI revenue, as the company measures it
Salesforce put a number on its artificial intelligence products. Combined annual recurring revenue for Agentforce and Data 360 was nearly $3.9 billion, up more than 210% year over year, the release said, with Agentforce alone above $1.5 billion, up more than 240%.
Those are company-defined ARR disclosures made by Salesforce rather than GAAP revenue lines, and the release does not reconcile them to reported revenue; they are the company's own characterisation of its AI business, not an independently established figure. Chief executive Marc Benioff said in the release: "We just delivered one of our best quarters ever, outperforming across every key metric. AI is delivering value across every layer." President and chief financial and operating officer Robin Washington said: "NNAOV growth is the strongest it's been in four years, keeping us on track for second-half organic revenue reacceleration." The release uses NNAOV to mean net new annual order value, an order-intake measure Salesforce does not reconcile to revenue either.
What the company told investors to expect
For the fiscal third quarter, Salesforce initiated guidance of $11.42 billion to $11.5 billion in revenue, growth of 11% to 12% year over year and in constant currency, with cRPO growth of roughly 14% year over year and in constant currency. The company said that cRPO guidance "does not include any contribution from the pending acquisitions of Contentful and Fin."
The full-year outlook moved up. Salesforce now expects fiscal 2027 revenue of $46.1 billion to $46.4 billion, growth of 11% to 12% as reported and 11% in constant currency. The company characterized that as a $200 million raise, or $300 million in constant currency. It guided full-year GAAP operating margin to 20.1% and non-GAAP operating margin to 34.3%, with operating cash flow and free cash flow growth of roughly 4% to 5%.
The results were released after Wednesday's close. US markets were still open at the time of writing on Thursday, and no closing price for the session was available.
