Investing.com -- Salesforce Inc. (NYSE: CRM) crushed Wall Street’s second-quarter expectations, driven by an explosive surge in AI demand and expanding margins that sent shares climbing 11% after hours.

Salesforce reported second-quarter results that significantly exceeded expectations, with adjusted earnings per share of $5.90 easily beating the analyst estimate of $3.27 by $2.63. Revenue reached $11.3 billion, matching the consensus estimate and rising 11% YoY.

The company raised its full-year fiscal 2027 revenue guidance to $46.1 billion to $46.4 billion, representing 11%-12% YoY growth. The midpoint of $46.25 billion exceeds the analyst consensus of $46.11 billion. Salesforce also lifted its full-year adjusted EPS guidance to $16.67-$16.71, well above the consensus of $14.16.

"We just delivered one of our best quarters ever, outperforming across every key metric," said Marc Benioff, Chair and CEO. "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."

For the third quarter, Salesforce expects revenue of $11.42 billion to $11.5 billion, with the midpoint of $11.46 billion slightly above the consensus of $11.42 billion. The company guided third-quarter adjusted EPS to $3.42-$3.44, compared to the analyst estimate of $3.39.

The company’s Agentforce and Data 360 annual recurring revenue reached nearly $3.9 billion, up over 210% YoY, while Agentforce ARR exceeded $1.5 billion, up over 240% YoY. Current remaining performance obligation grew 14% YoY to $33.5 billion.

Adjusted operating margin came in at 34.1% for the quarter, while operating cash flow surged 71% YoY to $1.3 billion.