💃 Salesforce 2025Q2 (FY2026Q2) Earnings Call 🕺

Good morning, Salesforce Nerd! Question - what makes an earnings call “good?”

When the company beats all financial expectations?

Apparently not, because the markets immediate reaction was a 👎.

All of your Salesforce 2025Q2 (FY2026Q2) Earnings Call highlights wrapped into a 4 minute burrito 🌯.

THE NUMBERS

Salesforce FY2026Q2 Earnings

Revenue | $10.2 billion actual vs $9.17 billion expected, a 10% YoY increase.

Earnings | $2.91 per share vs $2.78 expected

Furthermore, Salesforce adjusted guidance for fiscal year from $41.1BB to $41.3BB.

Operating Margin continues to increase and was an impressive 34.3% in Q2 📈.

Great news, right? RIGHT?!

😳

A double-beat (revenue and EPS), raised guidance, and this conversion of cost-center to profit-center move…and The Street still said “no thanks.” What gives?

THE ONLY THING THAT MATTERS

Salesforce Growth

Or more specifically - lack of growth has investors concerned.

In the near-term, despite an expectations-beating earnings, Salesforce is telling us Q3 will not meet expectations.

In the long-term, well, no one is impressed.

The Q&A session of the earnings call had the big-bank analysts hammering Marc and company on growth plans.

“Has SaaS outlived its long run?”

“What’s your strategy when deciding on stock buybacks versus M&A?”

“You’ve made strides going down-market to mid-market business, will there be more of that?”

And Barclays, the final analyst to ask a question, took all of 2 seconds to ask “what is the growth outlook?”

These are mega-money-managers whose clientele demand an ROI and they are concerned Salesforce will not deliver it.

While stock buybacks and dividends are a nice pat-on-the-head for investors, they’re not as shiny as investing in world-class AI engineers, building data centers, or bold acquisitions.

Side note - could you imagine if this deal would have gone through? Would’ve been a phenomenal investment for Salesforce!

The entire vibe of the call felt like reaching. Salesforce saying anything they legally could to “demonstrate value to investors.”

They brought new value-add buzz phrases like “Agentic Enterprise.”

They touted their cash positions and rewarding investors with dividends and stock buybacks.

But it felt flat and forced, like they knew they walked into the room empty-handed.

THE PEOPLE HAVE SPOKEN

Salesforce Trends

It’s always fun to see other perspectives - how did Twitter react to the earnings call?

Marc mentioned multiple times on the call that Salesforce’s government business is valuable to them. And he was recently seen hanging with Elon, who no doubt still has contacts in federal tech budget departments.

👀 peep those logos! And “Agentic Enterprise” was the phrase of the day! We are so post-AI…

Hot take - this guy doesn’t like Salesforce! Marc must’ve stolen his lunch money back in the day 🤷‍♂️.

This guy says to short the stock (it’s like betting No Pass Line in craps 🎲). Not much confidence in the near-future.

A smart person’s take on the earnings and the subsequent stock drop.

🙁

😂 @ this interaction between Marc and 🤖!

WHERE DO WE GO FROM HERE?

Salesforce’s Next Steps

Salesforce has an uphill battle the next 3 months. They need to reverse investor confidence aggressively. What can you expect from Marc and team? Here’s 3 things-

🤝 M&A

2025 has not been a healthy M&A environment, contending with over-valuation and high interest rates. But Marc and Salesforce have 2 things going for them -

Salesforce is sitting on a pile of cash 💰.

And they’re not afraid to use it 🫡.

Expect them to continue to farm for M&A opportunities they think will inject some life into their revenue…despite this lil thingy 😂

The stars could be aligning for this company to be acquired…

☁️ Dreamforce 

Are you going to Dreamforce? Expect some aggressive marketing.

The most surefire way to grow a company is to increase sales, and Dreamforce is like looking for a needle in a needle stack - a sea of sales and marketing execs with decision-making powers for departmental budgets.

Expect to see Matthew McConaughey and Metallica running Agentforce demos 😘.

🙏 Pray

Pray. Pray for an AI miracle.

A world-moving success story that says “Buy Salesforce’s AI products or you will lose to everyone who does.” The odds of this happening in time for Q4 are bleak, but if this movie taught us anything, it’s that AI can go from 0-100 real quick!

SOUL FOOD

Today’s Principle

and now....Your Salesforce Memes