Salesforce Inc (NYSE: CRM) is set to report second-quarter financial results after market close on Wednesday. The software giant faces scrutiny over its ability to translate artificial intelligence initiatives into sustainable organic growth.

Earnings Estimates

Analysts project Salesforce will report second-quarter revenue of $11.32 billion, representing a year-over-year increase from $10.24 billion in the prior-year period. This estimate implies a growth rate of approximately 10.5%.

For earnings per share, analysts anticipate a figure of $3.27, up from $2.91 a year ago. The company has demonstrated consistency in meeting these benchmarks, beating revenue estimates in two consecutive quarters and seven of the last ten overall. Similarly, EPS estimates have been beaten in six straight quarters and nine of the last ten.

What the Numbers Show

The divergence between consistent earnings beats and recent stock performance highlights investor skepticism regarding growth quality. While Salesforce has beaten EPS estimates in six straight quarters, its stock has declined after five of the last eight earnings reports. This pattern suggests that mere top-line or bottom-line compliance with expectations is insufficient to drive valuation multiples; investors are demanding evidence of structural acceleration rather than incremental gains.

Strategic Focus: Agentforce and Data 360

Jay Woods, Chief Market Strategist at Freedom Capital Markets, noted that investors are seeking "evidence" that new offerings like Agentforce and Data 360 can accelerate organic growth. A critical concern is whether these products are cannibalizing existing subscription revenue or generating net-new demand.

Management’s guidance for the second half of the fiscal year will be pivotal. Investors are specifically watching for confirmation of the growth acceleration previously promised by leadership. CEO Marc Benioff has identified Agentic AI as the "biggest growth opportunity for our customers," following a first quarter that delivered record revenue, record deals, and record cash flow.

Key Metrics to Watch

Beyond headline revenue, remaining performance obligations (RPO) serve as a leading indicator for future bookings. In the first quarter, RPO stood at $67.9 billion, up 11% year-over-year. Analysts will look for continued double-digit growth in this metric alongside current-quarter revenue to validate the health of the sales pipeline.

The monetization strategy for AI tools remains a central theme. With concerns that legacy business models could be disrupted by standalone AI competitors, Salesforce must demonstrate that its integrated approach retains customers and wins new enterprise contracts.

Stock Performance and Analyst Views

Salesforce shares closed at $205.68 on Tuesday, down 1.6% for the session. The stock is down 18.9% year-to-date in 2026, despite an 18.5% gain over the preceding month. It trades within a 52-week range of $146.32 to $269.11.

Woods identified the $208 level as a key resistance zone, aligning with June highs. Recent analyst ratings reflect mixed but generally positive outlooks:

• Citizens: Maintained Outperform rating; price target $315
• Canaccord Genuity: Maintained Buy rating; price target $225
• BTIG: Maintained Buy rating; price target $255
• BMO Capital: Maintained Outperform rating; raised price target from $215 to $230

Salesforce Inc (NYSE: CRM) prepares to report fiscal second-quarter earnings on Wednesday, Aug. 26. Management highlights rapid growth in AI-driven Agentforce annual recurring revenue (ARR) while noting organic revenue growth may slow to 6%-7% in the near term.

The company’s financial outlook presents a mixed picture as it balances strong demand for its new AI capabilities against broader headwinds in core customer relationship management (CRM) sales cycles.

Analyst Outlook and Ratings

Two major firms have maintained Buy ratings on the stock ahead of the report, though their price targets differ.

• BTIG: Analyst Allan Verkhovski maintained a Buy rating with a $255 price target. The firm remains confident in Salesforce’s valuation despite investor skepticism regarding potential acceleration in the second half of the fiscal year.
• Canaccord Genuity: Analyst David Hynes maintained a Buy rating with a $225 price target. Hynes noted that achieving significant revenue growth in the back half will be a "steep target," requiring substantial acceleration from current levels.

AI and Agentforce Momentum

A key focus for investors will be the durability and breadth of AI-driven growth. Hynes highlighted impressive sequential gains in the firm’s AI initiatives:

• Agentforce ARR grew 205% year-over-year in the first quarter, surpassing $1.2 billion.
• Combined Agentforce and Data 360 ARR reached $3.4 billion, up more than 200% year over year and around 100% organically.
• Hynes described the ~$400 million sequential increase in Agentforce ARR as impressive against Salesforce’s massive existing revenue base. He added that contributions from Fin are expected to layer on once that transaction closes.

BTIG’s Verkhovski added that channel checks indicate a growing number of customers are putting Agentforce into production, with AI budgets remaining a clear priority for many enterprises.

Revenue Guidance and Customer Trends

Management has suggested that net new average order value (NNAOV) could boost overall revenue growth in the second half. For the past four consecutive quarters, new customer business (NNAOV) has grown faster than existing business (average order value or AOV).

However, challenges remain in the core CRM business:

• Second-quarter guidance suggests organic growth could slow to around 6%-7%, excluding contributions from Informatica.
• Microsoft Corp (NASDAQ: MSFT) indicated moderation in Dynamics sales cycles, while HubSpot Inc (NYSE: HUBS) highlighted softer demand and greater budget sensitivity.
• Tableau continues to face challenges, according to BTIG channel checks.

Hynes stated that for Salesforce to meet its revenue target for the second half, sales growth would need to accelerate significantly from the current 6%-7% level. Upside to the second-quarter cRPO (current remaining performance obligation) guidance would signal that improving bookings momentum is likely to flow through to the forward revenue base.

FQ2 Estimates

BTIG analyst Allan Verkhovski provided these estimates for the upcoming report:

Verkhovski noted that most investors remain skeptical that CRM can deliver acceleration in the second half, making this earnings report particularly interesting.

Price Action

Shares of Salesforce declined by 0.94% to $207.08 at the time of publication on Tuesday.