CRM giant’s Q2 revenue growth comes on the heels of CEO Marc Benioff announcing 4,000 customer service jobs have been cut in favor of AI.
Salesforce announced its second-quarter fiscal year 2026 results, which ended July 31, 2025, with revenue up 10% year-over-year.
Regarding the highlights of these results, annual recurring revenue from Data Cloud and AI surpassed $1.2 billion, representing a 120% year-over-year increase. It’s worth noting that Salesforce has closed more than 12,500 deals since the launch of Agentforce, of which more than 6,000 are paid.
Added to this is the fact that the company has closed more than 60 deals worth over $1 million, encompassing both Data Cloud and AI.
These results have led President and CEO Marc Benioff to declare that ““We delivered an outstanding quarter to close out the first half of the year, with strong performance across revenue, margin, cash flow, and cRPO — and we remain on track for fiscal 2026 to be a record year with nearly $15 billion in operating cash flow.”
President and Chief Operating and Finance Officer Robin Washington expressed similar sentiment in a statement issued by the company, saying, “Our second quarter results highlight our ability to drive profitable growth while helping our customers and ourselves become agentic enterprises.”
4,000 job cuts
The release of these results follows the company’s announcement that it has eliminated 4,000 jobs in its customer support division due to the use of AI, as confirmed by Benioff himself. According to the Salesfoce CEO, AI agents now handle half of customer conversations.
Salesforce employs 76,000 people worldwide after a sweeping reorganization undertaken in recent months, which Benioff himself described as “the most exciting of his career” during a conversation with The Logan Bartlett Show podcast.
However, in that conversation, he also acknowledged that, despite the cuts, the human workforce will continue to be an essential part of the company’s customer service. Furthermore, he described Salesforce’s model as hybrid, in which AI handles repetitive or routine tasks, while humans handle complex cases or manage customer relationships.
In his opinion, as he emphasized in the discussion, it’s not about replacing people entirely, but rather about creating a new kind of teamwork between software and staff. In fact, Salesforce’s goal of positioning AI as a gateway and people as a development force is to provide faster and more cost-effective service without compromising the personal touch that many customers still expect.
