02:27 PM EDT, 09/04/2025 (MT Newswires) -- Salesforce ( CRM ) posted solid fiscal Q2 results, driven by continued momentum in Data Cloud and artificial intelligence offerings, but near-term upside was limited as Q3 guidance came in only in line with expectations, RBC Capital Markets said.

The cloud software company's revenue rose 10% year-over-year to $10.24 billion, topping the consensus estimate of $10.14 billion. Non-GAAP earnings per share were $2.91, also ahead of market expectations.

Data Cloud and AI remained key growth drivers, with annual recurring revenue surpassing $1.2 billion, up 120% year over year. Salesforce ( CRM ) reported more than 12,500 Agentforce deals, including 6,000 paid contracts, with over 60 transactions above $1 million featuring Data Cloud and AI, the brokerage said in a research note Wednesday.

RBC said the Q3 outlook tempered near-term upside and added that while the quarter was solid, questions remain about the durability of demand, particularly around Agentforce.

The firm cut its price target to $250 from $275 and reiterated a sector perform rating.

Shares of Salesforce ( CRM ) were down more than 5% in recent Thursday trading.

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