Salesforce reported better-than-expected second quarter results, with revenue rising 10% to $10.24 billion and adjusted EPS at $2.91, beating estimates. Stock dropped over 5% in after-hours trading due to soft third-quarter revenue guidance and lack of upside in full-year outlook. Salesforce mentioned strong sales in its three largest applications and growth in AI-powered platform Agentforce. The company also disclosed a more than $1 billion ARR for “Data Cloud and AI” products. Salesforce’s third-quarter guidance missed revenue expectations but adjusted EPS was in line with estimates. The company nudged up its full-year revenue outlook to $41.1 billion to $41.3 billion. Salesforce lowered its GAAP operating margin guide but increased its non-GAAP outlook for the year. The company’s operating cash flow growth guide was also raised.

Read more at CNBC: Salesforce’s soft guidance gives the skeptics more fuel. Here’s why we are hanging on