Salesforce Reports Earnings Beat, CFO Exit: What to Know
Salesforce stock is struggling for direction Thursday after the tech giant disclosed Q2 earnings and a key C-suite shake up.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
Salesforce (CRM) stock is choppy Thursday as Wall Street parses the software-as-a-service firm's (Saas) second-quarter earnings beat and upwardly revised full-year profit forecast.
In the three months ended July 31, Saleforce's revenue increased 8.4% year-over-year to $9.3 billion. Its earnings per share (EPS) were up 20.8% from the year-ago period to $2.56.
"In Q2, we delivered strong performance across revenue, cash flow, margin and cRPO [current remaining performance obligation, a measure of revenue], and raised our fiscal year non-GAAP operating margin and cash flow growth guidance," said Salesforce CEO Marc Benioff in a statement.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Benioff added that the company's new AgentForce artificial intelligence (AI) platform is "reimagining enterprise software for a new world where humans with autonomous Agents drive customer success together. Salesforce is the only company with the leading apps, trusted data and agent-first platform to deliver this vision at scale and help companies realize the incredible benefits of AI."
The company's top- and bottom-line results beat analysts' expectations. Wall Street was anticipating revenue of $9.2 billion and earnings of $2.36 per share, according to CNBC.
As a result of its strong performance in the first half of the year, Salesforce raised its profit forecast for its full fiscal year. The company now anticipates earnings per share in the range of $10.03 to $10.11, up from its previous forecast of $9.86 to $9.94. It added that it continues to expect revenue to arrive between $37.7 billion to $38 billion.
For the third quarter, Salesforce is guiding for revenue in the range of $9.31 billion to $9.36 billion and EPS in the range of $2.42 to $2.44. This is mixed compared to analysts' expectations for revenue of $9.41 billion and earnings of $2.43 per share.
The report also included news that Amy Weaver will be leaving her position as chief financial officer of Salesforce.
Is Salesforce stock a buy, sell or hold?
Salesforce has been one of the worst Dow Jones stocks this year, off a little over 1% at last check. Still, Wall Street is bullish on CRM.
According to S&P Global Market Intelligence, the average analyst target price for CRM stock is $308.22, representing implied upside of roughly 19% to current levels. Meanwhile, the consensus recommendation is a Buy.
Financial services firm Needham is one of the more bullish outfits on the blue chip stock with a Buy rating and $345 price target.
"CRM reported modest, but largely in line, Q2 results," says Needham analyst Scott Berg. "While sales appear steady, the negative news was CFO Amy Weaver's resignation who was well-liked by the Street given her successful push for operating leverage. The call's highlight was details given for its new AgentForce bot technology CRM believes can drive incremental sales in Sales and Service Clouds."
Related Content
-
Dow Adds 1,206 Points to Top 50,000: Stock Market TodayThe S&P 500 and Nasdaq also had strong finishes to a volatile week, with beaten-down tech stocks outperforming.
-
Ask the Tax Editor: Federal Income Tax DeductionsAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on federal income tax deductions
-
States With No-Fault Car Insurance Laws (and How No-Fault Car Insurance Works)A breakdown of the confusing rules around no-fault car insurance in every state where it exists.
-
Dow Adds 1,206 Points to Top 50,000: Stock Market Today
The S&P 500 and Nasdaq also had strong finishes to a volatile week, with beaten-down tech stocks outperforming.
-
The Best Precious Metals ETFs to Buy in 2026Precious metals ETFs provide a hedge against monetary debasement and exposure to industrial-related tailwinds from emerging markets.
-
For the 2% Club, the Guardrails Approach and the 4% Rule Do Not Work: Here's What Works InsteadFor retirees with a pension, traditional withdrawal rules could be too restrictive. You need a tailored income plan that is much more flexible and realistic.
-
Retiring Next Year? Now Is the Time to Start Designing What Your Retirement Will Look LikeThis is when you should be shifting your focus from growing your portfolio to designing an income and tax strategy that aligns your resources with your purpose.
-
I'm a Financial Planner: This Layered Approach for Your Retirement Money Can Help Lower Your StressTo be confident about retirement, consider building a safety net by dividing assets into distinct layers and establishing a regular review process. Here's how.
-
Stocks Sink With Alphabet, Bitcoin: Stock Market TodayA dismal round of jobs data did little to lift sentiment on Thursday.
-
The 4 Estate Planning Documents Every High-Net-Worth Family Needs (Not Just a Will)The key to successful estate planning for HNW families isn't just drafting these four documents, but ensuring they're current and immediately accessible.
-
Love and Legacy: What Couples Rarely Talk About (But Should)Couples who talk openly about finances, including estate planning, are more likely to head into retirement joyfully. How can you get the conversation going?
