CRM earnings analysis
What we found in CRM's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Salesforce delivered Q2 FY27 revenue of $11.345 billion and GAAP diluted EPS of $4.29, exceeding consensus estimates of $11.317 billion and $3.09, respectively. Management raised FY27 revenue guidance to $46.1 billion-$46.4 billion from $45.9 billion-$46.2 billion, although the increase depends partly on pending acquisitions and includes a $100 million FX headwind. Liquidity remains strong at $11.4 billion, but the balance sheet now carries $25.0 billion of newly issued notes and a $6.0 billion floating-rate term loan, while strategic-investment and AI-related volatility remain significant risks.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and EPS Beat Estimates
- Q2 FY27 revenue was $11.345 billion versus the $11.317 billion consensus estimate, while GAAP diluted EPS was $4.29 versus the $3.09 estimate.
- Liquidity Increased
- Cash, cash equivalents and marketable securities totaled $11.4 billion at July 31, 2026, up from $9.6 billion at January 31, 2026, providing substantial liquidity for buybacks, acquisitions and capital expenditures.
- Financing Supports Strategic Flexibility
- The company issued $25.0 billion of March 2026 Notes with maturities from 2028 to 2066 and had $6.0 billion outstanding under the 2026 Term Loan Credit Agreement; the $5.0 billion revolving credit facility had no outstanding borrowings.
- Large AI Investment Portfolio
- The strategic investment portfolio had a carrying value of $11.292 billion across more than 450 companies, including a $5.1 billion Anthropic investment.
- Significant Buyback Capacity
- The company had $22.855 billion of remaining share-repurchase authorization at July 31, 2026, although it made no repurchases during May, June or July 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Strategic Investment Volatility
- The filing identifies a material strategic-investment volatility risk: a 10% decline in the enterprise value of the five largest privately held investments would reduce the portfolio carrying value by approximately $641 million. The portfolio included $11.292 billion of equity investments.
- Higher Leverage and Rate Exposure
- Debt-related risk increased following the $25.0 billion March 2026 Notes issuance and the $6.0 billion floating-rate term loan. A 100-basis-point rate move could change the fair value of the fixed-income portfolio by $36 million, versus $31 million at January 31, 2026.
- AI, Cybersecurity and Vendor Risk
- The filing expands cybersecurity and AI-related risk disclosures, including threats using autonomous AI agents and frontier AI models. Salesforce also relies on third-party AI models and cloud infrastructure, and additional AI-related computing and compliance costs could pressure margins; FY27 non-GAAP operating margin is guided to 34.3%.
- Acquisition Execution Risk
- Pending acquisitions create execution and closing risk within the outlook: the $200 million increase in FY27 revenue guidance includes $200 million from pending Contentful and Fin acquisitions, while the outlook also includes a $100 million FX headwind.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $4.29
What they said about what is next.
FY27 revenue outlook was raised to $46.1 billion-$46.4 billion from $45.9 billion-$46.2 billion. The increase reflects $100 million of organic growth and $200 million from pending Contentful and Fin acquisitions, partly offset by a $100 million foreign-exchange headwind; GAAP operating margin is guided to 20.1% and non-GAAP operating margin to 34.3%.
The filing reads better than the one before it.
What came before.
- 10-Q · May 27, 2026
- Salesforce, Inc. reported strong Q1 FY27 results, with revenue reaching $11.1 billion, a 13% increase year-over-year, and a non-GAAP EPS of $3.88, exceeding analyst expectations. The company also announced raised…
- 10-K · March 2, 2026
- Salesforce closed the Informatica acquisition in the fourth quarter of fiscal 2026 and reports multi-quarter strength: fiscal 2026 revenue totaled $41.53B (sum of quarterly results), with diluted EPS of $7.81 and free…
- 10-Q · May 29, 2025
- Salesforce reported quarterly revenue of $9,829 million, up $696 million (+7.6%) versus $9,133 million a year ago, with gross profit of $7,564 million and income from operations of $1,942 million. Margins improved…
- 10-Q · December 4, 2024
- Salesforce reported revenue of $9,444 million for the three months ended October 31, 2024, up from $8,720 million a year earlier, with gross profit of $7,339 million and operating income of $1,893 million. Diluted EPS…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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