Quarterly Results Show Growth, but Cautious Outlook Ahead
Salesforce reported higher-than-expected revenue for the second quarter of fiscal 2026, with total revenue reaching $10.24 billion—a 9.8% increase year-over-year, slightly surpassing analyst estimates. Subscription and support services, the company’s core business, saw revenue climb 11% to $9.69 billion, indicating continued demand for Salesforce’s cloud-based solutions[2].
However, despite the positive results for the current quarter, the company’s outlook for the next quarter fell short of Wall Street expectations. Executives warned that broader demand for AI-driven products, such as the
AI Agentforce platform, is only beginning to materialize[4].
AI Monetization Remains Elusive
Salesforce has been investing heavily in generative AI integrations across its suite of applications. The company touted rapid growth in its AI and Data Cloud businesses, reporting that AI annual recurring revenue has now surpassed $1 billion due to widespread customer adoption[1].
Yet, analysts highlighted that Salesforce’s actual revenue contributions from AI products remain small relative to its overall sales. Monetizing AI at scale has proven more challenging than anticipated, despite high interest and multiple pilot programs among Fortune 500 customers.
- AI and Data Cloud annual recurring revenue: $1 billion, up 120% year-over-year
- AI-enabled offerings: Show strong adoption but limited direct impact on total revenue to date
Company Guidance Undershoots Expectations
Salesforce now expects full-year revenue between $41.1 and $41.3 billion and adjusted earnings between $11.33 and $11.37 per share—both in line with previous guidance, but lacking upside revisions that analysts were hoping for[3]. Unearned revenue, an indicator of future sales, climbed 8.8% but came in below forecasts[2].
Company leadership acknowledged the “early innings” of enterprise AI monetization, focusing on expanding use cases and customer proof points for platforms like
Agentforce. However, Salesforce must demonstrate meaningful revenue impact from these innovations if it hopes to accelerate growth in upcoming quarters.
Key Takeaways
- Solid quarterly growth: Revenue and profit up nearly 10% year-over-year
- AI traction, slow path to material revenue: AI-related sales are growing rapidly from a small base, with large-scale monetization still ahead
- Cautious outlook for the rest of FY2026: Guidance matches previous forecasts, reflecting uncertainty about the speed of AI’s financial impact
