Revenue of $11,345m beat the API Ninjas estimate of $11,330m by 0.1% -- effectively in line -- while non-GAAP diluted EPS of $5.90 beat the $3.27 estimate by 80%.
That EPS gap is not operations: gains on strategic investments of $2,613m against $6m a year ago added $2.43 to GAAP diluted EPS on the company's own disclosure.
Income from operations of $2,331m was flat against $2,332m a year ago even as revenue grew 11%, because cost of subscription revenue rose 23% and sales and marketing rose 12%.
cRPO of $33.5bn grew 14% year over year, ahead of the 11% revenue growth, and FY27 revenue guidance rose to $46.1bn-$46.4bn.
Key metrics
Metric
Reported
Prior year
Change
Total revenues
$11,345m
$10,236m
+11%
Current remaining performance obligation (cRPO)
$33.5bn
—
+14% yoy
Income from operations
$2,331m
$2,332m
flat
Gains on strategic investments, net
$2,613m
$6m
n/m
Agentforce and Data 360 ARR
nearly $3.9bn
—
+over 210% yoy
Diluted shares outstanding
821m
962m
-14.7%
Guidance changes
Item
New guidance
Prior guidance
FY27 revenue
$46.1 billion to $46.4 billion
$200M lower ($300M in CC) before this raise
Q3 FY27 revenue
$11.42 billion to $11.5 billion
—
FY27 non-GAAP diluted net income per share
$16.67 - $16.71
—
FY27 GAAP operating margin
20.1%
—
Q3 FY27 cRPO growth
approximately 14% Y/Y and in CC
—
FY27 subscription and support revenue growth
slightly above 12% Y/Y
—
Quality of earnings
Gains on strategic investments of $2,613m versus $6m a year ago are the entire earnings delta and contributed $2.43 of GAAP diluted EPS at a 23.5% tax rate.
Revenue includes a $456m Informatica contribution, roughly 4 points of the 11% growth, so organic growth is closer to 7%.
Diluted shares fell to 821m from 962m under the $25bn accelerated repurchase, lifting per-share figures independently of earnings.
Gotchas & watch items
Interest expense rose to $473m from $67m a year ago, a $406m annualising drag from the debt behind the buyback and acquisitions.
The FY27 revenue raise of $200m is mostly inorganic: $200m from the pending Contentful and Fin closings and $100m of organic growth, less a $100m FX headwind.
GAAP operating margin guidance was cut to 20.1% while the non-GAAP figure held at 34.3%, widening the gap the adjustments carry.
The FY27 guide is conditional on the Contentful and Fin transactions closing in the third quarter.