Salesforce Beats Q2 Forecasts, Ups Guidance

Salesforce has reported robust second-quarter results, surpassing both revenue and earnings expectations. The company's revenue for the July quarter stood at $9.3 billion, with a cash profit of $2.56 per share. The operating profits saw a growth of 1.9 percentage points from the previous year's quarter, accounting for 19.1% of the revenue. The operating margin, when excluding noncash charges, expanded by 2.1 percentage points, reaching 33.7%.

The company's operating cash flow witnessed a 10% increase year-over-year, amounting to $890 million. The free cash flow, inclusive of capital spending, rose by 20%, totaling $760 million. Salesforce has also revised its full-year earnings guidance for the fiscal year ending January 2025 upwards. The company now anticipates the revenue to fall within the range of $37.7 billion to $38 billion, and the cash profit to be between $10.03 and $10.11 per share.

In a separate development, Salesforce's financial chief, Amy Weaver, is set to resign. Following this announcement, the company's stock experienced a 4.9% rise in premarket trading on Thursday. However, it later receded to a gain of just 0.3%, settling at $260 after the market opened.