Salesforce (NYSE:CRM) slipped 4% during early post-market trading Wednesday after it reported its second quarter fiscal 2026 financial results and outlook.
Second quarter results easily surpassed estimates, while the third quarter and full-year outlook demonstrated mixed results.
For the quarter ended July 31, the customer relations management software company reported adjusted earnings per share of $2.91, which was more than the consensus estimate of $2.78.
Revenue for the quarter totaled $10.24B, which also surpassed the estimate of $10.14B.
“Salesforce delivered a slight beat, but the stock is down, and that only shows how overheated the AI market is,” said Seeking Alpha analyst Julian Ostian. “Investors don’t want to see steady results, they’re chasing triple-digit growth like it’s the next Nvidia (NVDA), but that was a once-in-a-lifetime story. Guidance is in line, and with the stock trading almost 50% below its 5-year average multiple and slightly under sector levels on forward earnings, the disconnect looks more about sentiment than fundamentals. Besides, the forward PEG ratio shows an even bigger discount.”
Looking ahead to the quarter in progress, Salesforce projects adjusted EPS of $2.85 versus the estimate of $2.84. It expects third-quarter revenue to range from $10.24B to $10.29B with a midpoint of $10.265B less than the estimate of $10.28B.
The company increased its full-year adjusted EPS to a midpoint of $11.35 versus the prior midpoint of $11.30. The consensus calls for $11.29. Salesforce expects full-year revenue to range from $41.1B to $41.3B with a midpoint of $41.2B basically in line with the $41.24B estimate.
“We delivered an outstanding quarter to close out the first half of the year, with strong performance across revenue, margin, cash flow, and cRPO—and we remain on track for fiscal 2026 to be a record year with nearly $15 billion in operating cash flow,” said Salesforce CEO Marc Benioff. “These results reflect the success of our customers—like Pfizer, Marriott, and the U.S. Army—who are transforming into agentic enterprises, where humans and AI agents work side by side to reimagine workflows, accelerate productivity, and deliver customer success.”