Salesforce Earnings: Strong Bookings, Second-Half Reacceleration, Positive Anthropic Announcement

We were pleased to see Salesforce stock bounce materially after this quarter's results.

Key Morningstar Metrics for Salesforce

• : $280.00

• : ★★★

• : Narrow

• : High

What We Thought of Salesforce's Earnings

Salesforce CRM delivered a solid fiscal second quarter, with contracted demand and paid artificial intelligence adoption providing the most encouraging signals. Revenue of $11.35 billion increased 11% year over year and landed near the high end of management's guidance.

Why it matters: The quarter strengthens our confidence that Salesforce can produce modest organic growth acceleration during the second half, and that the firm's AI monetization is becoming more credible.

• Agentforce ARR exceeded $1.5 billion, combined Agentforce and Data 360 ARR approached $3.9 billion, and Agentic Work Units nearly doubled sequentially. Salesforce added 2,000 paying production customers, and half of Agentforce bookings came from customers replenishing consumed Flex Credits.

• Overall these datapoints broadly support that growth remains healthy and some customers are moving beyond pilots for newer products. Salesforce did expand the Agentforce ARR definition to include Slackbot and Headless 360 this quarter, limiting comparability with prior periods.

The bottom line: We do not expect to materially change our fair value estimate of $280 per share and still view shares as modestly undervalued. We were pleased to see shares bounce materially, up 22% as of writing Aug. 27, after this quarter's results, with shares now up over 60% from the recent lows.

• Claudeforce, the newly announced Anthropic partnership, reinforces Salesforce's strategy of serving as the governed data and workflow layer underneath multiple AI models and interfaces. Customers will be able to use Claude on top of Salesforce without replacing Salesforce as the system of record.

• This supports our decision to maintain Salesforce's moat at narrow following our software sector moat reviews, as we still liked Salesforce's infrastructure positioning, switching costs, and valuable installed customer base.

Long view: We see Salesforce increasingly positioned as a key distribution and record layer for AI, not replaced by AI.