Salesforce saw its shares rise by 4% in extended trading on Wednesday following the release of its fiscal second-quarter results, which exceeded expectations and prompted the company to uplift its full-year profit forecast.
For the quarter ending July 31, Salesforce reported earnings per share (EPS) of $2.56 on an adjusted basis, surpassing the consensus estimate of $2.36. Revenue for the period reached $9.33 billion, exceeding the anticipated $9.23 billion. The company achieved an 8% year-over-year revenue increase, driven in part by a shift towards premium products and higher average revenue per user.
Looking ahead, Salesforce has projected adjusted EPS for the third quarter to range between $2.42 and $2.44, with revenue expected to be between $9.31 billion and $9.36 billion. This guidance is slightly below the analyst consensus of $2.43 per share and $9.41 billion in revenue. For the fiscal year 2025, the company anticipates adjusted EPS between $10.03 and $10.11, with total revenue expected to be between $37.7 billion and $38 billion, indicating a growth rate of 8% to 9%. Last quarter’s forecast was marginally lower, and the company’s updated operating margin guidance for the year is now set at 32.8%, up from 32.5% previously.
The announcement also included news of a significant leadership change. Amy Weaver, Salesforce’s Chief Financial Officer, will step down from her role, although she will continue to serve as an advisor once a successor is appointed. Weaver, who joined Salesforce in 2013 as General Counsel before taking over as CFO, will remain in her current position until a replacement is found. CEO Marc Benioff expressed that Weaver’s transition into the CFO role was his decision, recognizing her contributions to the company’s financial management.
In addition to its financial performance, Salesforce announced plans to test a new AI-driven tool called Einstein Copilot for Merchants, aimed at enhancing product page creation and promotional content with minimal user input. Benioff highlighted the company’s Agentforce AI capabilities, contrasting them with offerings from other tech giants.
Meanwhile, Microsoft’s AI solutions have faced some criticism, with Salesforce positioning its products as more accurate and user-friendly. Microsoft countered these claims, noting significant customer growth and positive feedback regarding its Copilot for Microsoft 365. Salesforce’s recent performance contrasts with the broader market trend, as the company’s shares have declined by 2% in 2024, while the S&P 500 index has seen a 17% increase. Activist investors
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