CRM
The setup
Salesforce is set to report second-quarter results on Wednesday after the close, and the bar isn’t just high — it’s doing yoga on the ceiling. Analysts are looking for $11.32 billion in revenue and $3.27 in EPS, both above last year’s Q2 numbers, which is the kind of backdrop that usually sounds friendly until you remember the stock’s allergic reaction to earnings surprises.
Why people are sweating this one
The company has actually been good at the whole “beat and raise” thing lately, with revenue beats in two straight quarters and seven of the last 10. But Salesforce shares have still fallen after five of the last eight earnings reports, which is a very corporate way of saying: the market wants more than a nice report card. It wants a pep rally.
AI, guidance, and the usual suspects
The real drama is whether Agentforce and Data 360 are doing more than just helping Salesforce talk a good game about AI. Investors want proof that these tools are creating fresh growth, not just shuffling revenue from one subscription bucket to another.
What to watch on the call:
- Whether revenue growth stays in double digits
- If remaining performance obligations keep climbing after last quarter’s $67.9 billion reading
- Whether management can back up its promise of a stronger second half
- Any hint that AI monetization is becoming real, not just conference-call poetry
Big picture
Salesforce has been one of the poster children for the “AI could disrupt this business” trade. This earnings report is its chance to flip the script and argue that the AI wave is something it can surf, not something that knocks it off the board.