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Chronicles

The story behind the story

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Salesforce beats in Q2 with revenue of $6.34B, up 23% YoY, Platform and Other revenue of $1.88B, up 24% YoY, and Sales Cloud revenue of $1.48B, up 15% YoY

Jordan Novet / CNBC :

CNBC Jordan Novet

Context & Ripple Effects

Salesforce entered the quarter after reporting $1.75B in Platform and Other revenue in Q1, while its prior Q2 had reached $5.15B in total revenue. The new figures extend that revenue trajectory while showing Platform and Other growing faster than Sales Cloud.

The gap matters because Salesforce’s newer Platform and Other segment is expanding at a quicker rate than its core Sales Cloud business, changing which parts of the portfolio account for incremental growth.

First-order effects

  • Salesforce adds $6.34B in quarterly revenue, with Platform and Other contributing $1.88B and growing 24% year over year.
  • Sales Cloud remains Salesforce’s largest named product segment in the report at $1.48B, but its 15% growth trails Platform and Other.

Second-order effects

  • Salesforce’s product and sales priorities gain an incentive to emphasize Platform and Other offerings, whose growth is outpacing Sales Cloud within the reported mix.

Third-order effects

  • If the relative growth rates persist, Salesforce’s expansion will be increasingly shaped by platform-adjacent revenue rather than Sales Cloud alone, broadening the company’s operating center of gravity.

The trend: Salesforce’s reported growth is shifting toward a broader platform portfolio as Platform and Other outgrows its core Sales Cloud segment.

Discussion

  • @jrichlive Jeff Richards on x
    Your quarterly reminder that Salesforce is now on a $24B+ revenue run rate. Analysts estimated the company's TAM to be $10B at IPO. “The TAM is bigger than you think” is permanently the headline on my “Valuations” TED Talk...🚀☁️ https://www.cnbc.com/...