It has been about a month since the last earnings report for Salesforce.com (CRM Quick QuoteCRM - Free Report) . Shares have lost about 2.1% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Salesforce.com due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Salesforce Inc. before we dive into how investors and analysts have reacted as of late.

Salesforce Q2 Earnings Surpass Estimates, Revenues Rise Y/Y

Salesforce reported second-quarter fiscal 2026 non-GAAP earnings of $2.91 per share, which beat the Zacks Consensus Estimate by 5.1%. The bottom line improved 13.7% year over year.

The growth in top and bottom lines reflected the benefits of CRM’s go-to-market strategy and sustained focus on customer success. The initiatives to integrate generative artificial intelligence (AI) into its offerings also boosted demand for Salesforce’s solutions during the reported quarter.

Salesforce Q2 Performance in Detail

Coming to CRM’s business segments, revenues from Subscription and Support (94.8% of total revenues) increased 11% year over year to $9.7 billion. Professional Services and Other (5.2% of total sales) revenues declined 3% to $546 million. Our estimates for Subscription and Support, and Professional Services and Other segments’ revenues were pegged at $9.6 billion and $546 million, respectively.

Under the Subscription and Support segment, Sales Cloud revenues grew 8% year over year to $2.3 billion. Revenues from Service Cloud increased 8% to $2.5 billion. Marketing & Commerce Cloud revenues rose 3% to $1.4 billion. Platform & Other revenues were up 16% to $2.1 billion. The Integration and Analytics division (which includes MuleSoft, Tableau, and Slack contributions) recorded 12% year-over-year growth to $1.5 billion.

Our estimates for Sales, Service, Market & Commerce, Platform & Other, and Integration & Analytics services revenues were pegged at $2.28 billion, $2.48 billion, $1.4 billion, $1.99 billion and $1.45 billion, respectively.

Revenues from the Americas (65.5% of total revenues) increased 9% year over year to $6.74 billion. Sales in EMEA (23.5%) grew 7% to $2.4 billion, while the Asia Pacific (11%) region’s revenues rose 11% to $1.1 billion.

Non-GAAP operating income was $3.51 billion, up 12% from the year-ago quarter’s $3.14 billion. Moreover, the non-GAAP operating margin expanded 60 bps to 34.3%, while the GAAP operating margin improved to 22.8%.

Salesforce’s Balance Sheet & Other Details

Salesforce exited the fiscal second quarter with cash, cash equivalents and marketable securities of $15.37 billion, down from $17.41 billion at the end of the previous quarter. CRM generated an operating cash flow of $605 million and a free cash flow of $740 million, reflecting typical seasonality in collections.

As of July 31, the current remaining performance obligation (cRPO) stood at $29.4 billion, up 11% year over year. The company returned $2.6 billion to shareholders, including $2.2 billion in share repurchases and $399 million in dividends, and expanded its repurchase program by $20 billion, bringing total authorization to $50 billion.

Salesforce’s Guidance for Q3 & FY26

Salesforce provided guidance for the third quarter of fiscal 2026. It projects total sales between $10.24 billion and $10.29 billion, which indicates 8-9% growth from the year-ago level. The company expects non-GAAP earnings per share in the band of $2.84-$2.86, while GAAP EPS is anticipated to be between $1.60 and $1.62. The cRPO growth is projected to be slightly above 10% year over year.

For fiscal 2026, Salesforce now expects revenues in the range of $41.1-$41.3 billion, up 8.5-9% year over year, compared with the prior guidance of $41.0-$41.3 billion. Subscription and Support revenues are expected to increase approximately 9.5% year over year. The company now anticipates fiscal 2026 non-GAAP earnings per share in the range of $11.33-$11.37, slightly higher than the previous forecast of $11.27-$11.33.

Non-GAAP operating margin is projected to expand to 34.1%, while GAAP operating margin is expected to be 21.2%. Salesforce raised its forecast for operating cash flow growth to 12-13% year over year from the previous guidance of 10-11%. The company expects free cash flow growth to be in the range of 12-13% year over year, up from the previous guidance of 9-10%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

VGM Scores

At this time, Salesforce.com has a average Growth Score of C, a score with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Salesforce.com has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Salesforce.com belongs to the Zacks Computer - Software industry. Another stock from the same industry, Intuit (INTU Quick QuoteINTU - Free Report) , has gained 2% over the past month. More than a month has passed since the company reported results for the quarter ended July 2025.

Intuit reported revenues of $3.83 billion in the last reported quarter, representing a year-over-year change of +20.3%. EPS of $2.75 for the same period compares with $1.99 a year ago.

Intuit is expected to post earnings of $3.10 per share for the current quarter, representing a year-over-year change of +24%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

Intuit has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.