Salesforce.com Inc. (CRM) has just delivered a one-two punch that’s sending shockwaves through the market. Not only did the company post jaw-dropping earnings, but it also announced a major executive departure. Here’s why this news is a big deal for your portfolio.
In a quarter brimming with economic uncertainties, Salesforce has proven why it’s a titan in enterprise software. The company clocked in a stunning profit of $1.429 billion, translating to $1.47 per share. This figure easily surpassed analysts’ modest estimate of $1.28 per share. But that’s not all—revenue also crushed expectations, rising 8.4% to $9.325 billion, outstripping the projected $9.23 billion.
The blockbuster numbers don’t stop there. Adjusted earnings skyrocketed to $2.56 per share, way ahead of the anticipated $2.36. Salesforce isn’t pausing for a victory lap either. The company has maintained its full-year revenue outlook between $37.7 billion and $38 billion, while nudging up its EPS guidance to a range of $10.03 to $10.11.
These figures shout loud and clear that Salesforce is here to stay, no matter the economic headwinds.
In a surprising twist, CFO Amy Weaver is stepping down. She will remain in her role until a successor is named, then transition to an advisory role. This management shake-up comes just as the company appears to be firing on all cylinders, raising questions but also underscoring a confident transition plan.
We are reimagining enterprise software for a new world where humans with autonomous agents drive customer success together.
Marc Benioff
Salesforce CEO Marc Benioff isn’t one to shy away from making waves. He’s making it crystal clear that Salesforce is deeply invested in AI, stating, “We are reimagining enterprise software for a new world where humans with autonomous agents drive customer success together.”
But Benioff didn’t stop at praising his own company’s initiatives. He took a swipe at Microsoft’s AI efforts, saying, “So many customers are so disappointed in what they bought from Microsoft, and copilots, because they aren’t getting the accuracy and the responses they want. Microsoft has disappointed so many customers with AI.”
The market seems to be in Salesforce’s corner. Following the announcement, shares rose in extended trading, a clear signal that investors are thrilled with the earnings report and the solid guidance for the future.
Here’s a look at some crucial metrics from Salesforce’s latest financial update:
| Category | Value |
|---|---|
| Second-Quarter Revenue | $9.33 billion |
| Second-Quarter Adjusted EPS | $2.56 |
| Revenue Growth (Year-Over-Year) | 8% |
| Current Remaining Performance Obligation (cRPO) | $26.5 billion (up 10%) |
| Third-Quarter Projected Earnings per Share | $2.42 – $2.44 |
| Third-Quarter Projected Revenue | $9.31 billion – $9.36 billion |
| Fiscal 2025 Revenue Guidance | $37.7 billion – $38.0 billion |
| Fiscal 2025 Projected EPS | $10.03 – $10.11 |
| Fiscal 2025 Operating Cash Flow Growth Guidance | 21% – 24% Y/Y |
Market Monitors, be alert—Salesforce’s mix of promising earnings and strategic leadership transition has lots to unpack. Stay tuned for deeper dives and what this could mean for your investment strategy.
