Salesforce said more than 40% of Data Cloud and Agentforce bookings in the second quarter came from existing customers. The company also said it will expand into ITSM in a move to compete with ServiceNow.
Since Agentforce's launch, Salesforce has closed more than 12,500 deals and nearly half of them are paid.
The company reported second quarter earnings of $1.89 billion, or $1.96 a share, on revenue of $10.24 billion, up 10% from a year ago. Non-GAAP earnings were $2.91 a share.
Wall Street was expecting Salesforce to deliver non-GAAP second quarter earnings of $2.78 a share on revenue of $10.14 billion.
Salesforce CEO Marc Benioff said the company remains "on track for fiscal 2026 to be a record year with nearly $15 billion in operating cash flow." However, Wall Street is looking for more growth from Salesforce. Benioff said that Salesforce plans to expand into IT service management in a move that counters ServiceNow's move into CRM.
Speaking on a conference call, Benioff said:
"ITSM is an application area that we just haven't gone to before. But I'm very excited. A lot of our customers have been asking for this. We're bringing a whole new level of capability. We know how to do this because our own first customer is us. We are customer zero over the last six months."
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By the numbers:
- Data Cloud and AI annual recurring revenue topped $1.2 billion, up 120% from a year ago.
- Salesforce closed more than 60 deals worth more than $1 million in the second quarter that included Data Cloud and AI.
- Platform revenue in the second quarter was up 16% with sales and service revenue up 8% each. Integration and analytics revenue was up 12%. Marketing and commerce revenue was the laggard in the quarter with revenue growth of 3% in the second quarter.
On a conference call, Benioff outlined Agentforce use cases. He said:
- "I spent weeks on the road this summer, CEOs, CIOs, one thing is extremely clear to me, every single one of our customers is becoming it's a good vision for the future. It's a good vision for the future of business, and really it's a good vision for the future of Salesforce."
- Agentic AI is "a shift from traditional hierarchies to moving a company from busy work into natural conversations."
- "We are adding these native capabilities into every single one of our products. In sales, every prospect is getting a callback. We didn't have enough peole to call everyone back. With agentic sales everyone is getting called back."
- Salesforce will launch a new email platform that will turn messages into two-way conversations with AI agents.
As for the outlook, Salesforce came in lighter than expected. The company said third quarter revenue will be between $10.24 billion to $10.29 billion, up 8% to 9%. Non-GAAP earnings for the third quarter will be between $2.84 a share to $2.86 a share.
For fiscal 2026, Salesforce is projecting revenue of $41.1 billion to $41.3 billion, up about 9%, with non-GAAP earnings of $11.33 a share to $11.37 a share. GAAP earnings will be between $6.99 a share to $7.03 a share.
