Market Flux Event
Salesforce, CrowdStrike and HP All Beat Quarterly Estimates as Salesforce AI ARR Surges Past $3.9 Billion
Three major technology companies reported stronger-than-expected fiscal second-quarter results on August 26, with Salesforce posting the most dramatic earnings surprise. Salesforce reported Q2 revenue of $11.3 billion, just shy of the $11.32 billion estimate but up 11% year over year, while adjusted EPS of $5.90 crushed the $3.27 estimate by a wide margin, a 103% year-over-year increase. The company raised its full-year fiscal 2027 revenue guidance to $46.1 billion to $46.4 billion and lifted its adjusted EPS outlook to $16.67 to $16.71, well above the prior consensus of $14.14.
Salesforce said its AI and data annual recurring revenue reached approximately $3.9 billion, up more than 210% year over year, and called net new annualized order value growth the strongest in four years. Current remaining performance obligations stood at $33.5 billion, up 14% in constant currency. CrowdStrike also beat across the board, posting Q2 revenue of $1.47 billion against the $1.44 billion estimate, up 26% year over year, with adjusted EPS of $0.31 beating the $0.29 estimate.
Net new ARR of $333 million surged 51% year over year and beat the $285.9 million estimate. The company raised its full-year revenue guidance to $5.99 billion to $6.01 billion and increased its net new ARR growth outlook by 630 basis points to 34% at the midpoint. Total ARR reached $5.84 billion, up 25%, and free cash flow of $377 million beat estimates of $353 million.
HP delivered a record third quarter, with revenue of $15.7 billion, well above the $14.38 billion estimate and up 12.5% year over year. Personal Systems revenue drove the upside at $11.8 billion, up 18%, while Printing fell 2% to $3.9 billion. Free cash flow of $1.6 billion nearly tripled the $597 million estimate.
HP raised full-year adjusted EPS guidance to $3.19 to $3.29 from consensus of $3.04, and lifted free cash flow guidance to $3.0 billion to $3.2 billion. Everpure also reported a significant beat, with Q2 revenue of $1.2 billion against the $1.1 billion estimate, up 38%, and disclosed a second design win with a top-five hyperscaler. The company raised full-year revenue guidance to $5.03 billion to $5.07 billion, far above the prior $4.5 billion estimate, reflecting accelerating demand in AI and hyperscale products.
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Sources
- WallstengineSALESFORCE $CRM Q2’27 EARNINGS HIGHLIGHTS Revenue: $11.3B (Est. $11.32B) ; +11% YoY Adj. EPS: $5.90 (Est. $3.27) ; +103% YoY GAAP EPS: $4.29; +119% YoY cRPO: $33.5B; +14% YoY CC Raises FY27 Guide: Revenue: $46.1B-$46.4B (Est. $46.11B) Adj. EPS: $16.67-$16.71 (Est. $14.14) GAAP Op. Margin: 20.1% Non-GAAP Op. Margin: 34.3% Q3 Guide: Revenue: $11.42B-$11.5B (Est. $11.41B) Adj. EPS: $3.42-$3.44 (Est. $3.38) cRPO Growth: ~14% YoY CC Other Q2 Metrics: Remaining Performance Obligation: $66.3B; +11% YoY AI & Data ARR: ~$3.9B; +210%+ YoY Operating Cash Flow: $1.3B; +71% YoY Free Cash Flow: $1.1B; +81% YoY Comments: “AI is delivering value across every layer of our platform. We’re seeing incredible demand for our AI and data products, with ARR about to cross $4 billion.” “NNAOV growth is the strongest it's been in four years”
- FirstSquawkCROWDSTRIKE POSTED Q2 REVENUE OF $1.47 BLN, ABOVE THE $1.44 BLN ESTIMATE, WITH ADJUSTED EPS OF $3.31 AND NET NEW ARR OF $332.8 MLN VERSUS $285.9 MLN EXPECTED.
- FaststocknewssCROWDSTRIKE $CRWD FISCAL Q2 REVENUE BEATS, RAISES FY GUIDANCE AND ARR OUTLOOK - Revenue: $1.4709B vs $1.440B est, beat - Adjusted EPS: $0.31 - Free cash flow: $377M - Gross profit: $1.0969B - GAAP net income: $5.3M The company raised FY27 net new ARR growth guidance to 34% at the midpoint. Q3 guidance: revenue $1.5232B-$1.5292B vs $1.515B est, adjusted EPS $0.31, adjusted net income $325.4M-$327.9M vs $321.4M est, adjusted EBIT $372.7M-$375.9M. FY guidance: revenue $5.9911B-$6.0111B vs $5.928B est, adjusted net income $1.3027B-$1.3116B vs $1.277B est, adjusted EPS $1.25-$1.26, adjusted EBIT $1.4972B-$1.5084B.