Amy Weaver
President & Chief Financial Officer at Salesforce
Great. Thank you, Gavin, and good afternoon, everyone. Q2 was another quarter of remarkable top and bottom line performance. We exceeded our top line expectations, achieving record levels of Q2 new business. We saw strong demand across all of our products, regions, and customer sizes. And we were able to execute with discipline to drive higher operating income. We also completed the acquisition of Slack Technologies on July 21, bringing yet another best-in-class asset into our Customer 360. We believe that Slack will play a critical role in the digital transformation of our customers as they reimagine the future of work in a digital-first work from anywhere environment.
And that process is already underway with Slack's business accelerating into the close of the acquisition. In Q2, Slack's revenue grew 39% year-over-year on a stand-alone basis, which excludes any impact of purchase accounting. Slack also saw strong performance in customer acquisition, especially in the enterprise. The number of paid customers spending greater than $100,000 annually accelerated during the quarter, up 41%. For the short period between the close of the deal and the end of our fiscal Q2, Slack's operating results were immaterial to our non-GAAP results, and they are included below the line in OIE.
Slack is consequently excluded from our reported revenue and non-GAAP operating income. Where appropriate, we will call out Slack-specific impact on our Q2 results and our guidance. As part of the acquisition, this quarter we issued $8 billion of senior notes with a weighted average interest rate of 2.25% and weighted average maturity of 20 years. We were very pleased by the terms we received on what we view as an inexpensive source of capital. In particular, I'd like to call attention to the strong reception of our $1 billion sustainability bond, which was our most oversubscribed note in the offering. And not only did we raise funds on favorable terms, but concurrent with our debt raise, S&P upgraded our credit rating to A+.
Now, let me walk you through some of the results for Q2 fiscal '22, starting with top line commentary. Total revenue for the second quarter was $6.34 billion, up 23% year-over-year or 21% in constant currency. The strong new business pipeline that we've discussed the last few quarters enabled us to deliver these results as new business momentum continued to exceed our expectations. A few key highlights; we saw acceleration in Sales Cloud with Q2 revenue of $1.5 billion or 15% year-over-year growth. Tableau and MuleSoft continued their momentum in enterprise deals as both saw their share of the company's top 10 deals increase.
As Bret noted, Tableau was in nine of the top 10, and MuleSoft in eight of the top 10 deals this quarter. This is an incredible accomplishment and evidence of how strategic these acquisitions have become for our customers. Public sector continues to be an area of strength, accounting for four of the top 10 deals this quarter. And again this quarter, our seven-figure deals on average included more than 4.5 clouds. The number of seven-figure deals including five or more clouds grew by 29% year-over-year, showing continued momentum in our enterprise deals. And we continue to see strength in our international businesses, which accelerated sequentially, although we will note that EMEA and APAC growth benefited modestly from the integration of acquisitions into our billing practices.
We remain pleased with the progress on attrition with revenue attrition in Q2 between 8% and 8.5%, an improvement from last quarter's 9% to 9.5%. Attrition has continued to perform better than anticipated. As a reminder, our attrition rate is calculated based on trailing 12-month performance, and we have now lapped the second quarter of fiscal 2021, which was impacted by the early days of the pandemic. Our remaining performance obligation representing all future revenue under contract ended Q2 at approximately $36.2 billion, up 18% year-over-year.
Current remaining performance obligation, or CRPO, which represents all future revenue under contract that is expected to be recognized as revenue in the next 12 months, was approximately $18.7 billion, up 23% both year-over-year and in constant currency. Slack represents 4 points of growth, ahead of the 3 points we guided to last quarter, due primarily to changes in our assumptions around purchase accounting. Turning to operating margin, Q2 non-GAAP operating margin was 20.4%, benefiting from revenue outperformance, efficiencies from a work from anywhere world, and the focus on disciplined spending. Salesforce recorded $45 million of transaction-related costs due to closing the Slack acquisition during the quarter.
Q2 GAAP EPS was $0.56 and non-GAAP EPS was $1.48. The outperformance in the quarter was primarily due to higher revenue and expense efficiencies as well as realized and unrealized gains on our strategic investments portfolio. These mark-to-market adjustments benefited GAAP EPS by approximately $0.42 and non-GAAP EPS by approximately $0.43. Turning to cash flow, operating cash flow in the second quarter was $386 million, down 10% year-over-year. On the cash basis, Salesforce paid $43 million of transaction fees related to the Slack acquisition. Capex for the quarter was $213 million, leading to free cash flow of $173 million, down 45% year-over-year.
And as a reminder, we continue to expect cash flow seasonality to skew higher to Q1 and Q4. Slack's operating results had no impact to Q2 operating cash flow or capex. Now, turning to guidance, we expect Q3 revenue of $6.78 billion to $6.79 billion or approximately 25% growth year-over-year. This guidance assumes a $250 million contribution from Slack. For Q3, we expect to deliver CRPO growth of approximately 22%. This includes 4 points of growth from Slack. We expect Q3 GAAP EPS of negative $0.06 to negative $0.05 and non-GAAP EPS of $0.91 to $0.92. Now moving to fiscal 2022 guidance updates. As a result of our year-to-date performance and strong execution in the current demand environment, we are raising our fiscal '22 revenue guidance by $300 million to $26.2 billion to $26.3 billion, or approximately 24% growth year-over-year.
This guidance incorporates an expected revenue contribution of $530 million from Slack in the second half of fiscal '22, an increase of $30 million over our previous guide. This guidance also includes $200 million from Acumen, an increase of $10 million from our previous guide. Net of the revised Slack and Acumen contributions, this represents a $260 million raise on our core business. Our ability to execute in the demand environment both remains strong. We are also raising our fiscal '22 non-GAAP operating margin to 18.5%, representing an expansion of 80 basis points year-over-year.
This now includes an expected 150 basis points headwind from Slack and Acumen or 10 basis points less headwind compared to our previous guidance. Excluding this 10-basis point adjustment, our operating margin guidance represents a 40-basis point raise compared to our previous guidance. We are also raising fiscal 2022 GAAP diluted EPS to $0.81 to $0.83 and raising our non-GAAP diluted EPS to $4.36 to $4.38. We expect recent M&A will be an approximately $0.51 headwind to non-GAAP diluted EPS. Please recall that our OIE and EPS guidance assume no further contribution from mark-to-market accounting as required by ASU 2016-01.
We are raising our fiscal '22 operating cash flow guidance by 2 points, now expecting 14% to 15% growth year-over-year. The increase from our previous guide is primarily driven by revenue performance and lower headwind from M&A. The dilutive cash flow impact of Slack and Acumen now represents a headwind to our year-over-year growth of approximately 7 points. Excluding the anticipated impact of M&A, operating cash flow growth would be 21% to 22%. We continue to expect capex to be approximately 3% of revenue in fiscal '22 resulting in a free cash flow growth rate of approximately 15% to 16% for the fiscal year.
Excluding the anticipated impact of M&A as previously noted this rate would be 22% to 23%. To close, we remain excited by the strength we see in the demand environment and we're seeing record levels of revenue and operating margin. Our flagship product and Sales Cloud saw acceleration this quarter. We closed our largest deal in customer history. We had an impressive first half of fiscal '22, and we're excited to continue Slack's momentum with the power of our two companies now together. And the increased revenue guidance reflects the confidence we have in the fundamentals of our business, and we remain well on our way to achieving our goal of $50 billion in fiscal '26.
We are committed to being disciplined along the way while challenging ourselves to find additional areas of operational improvement. I want to say thank you to all of our employees for being able to focus on disciplined efficient growth during the quarter, and we're looking forward to further strengthening the durability of our operating model going forward. And finally, I look forward to engaging with many of you at our upcoming Investor Day on September 23.
I'll now turn the call back to Marc for some final comments.
