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.


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.

Sign up for Kiplinger’s Free E-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
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Married? Five Ways to Ensure Your Estate Plans Work in Tandem
Getting on the same page now means fewer potential problems when it counts.
By Kiplinger Advisor Collective
-
12 Investments No Retiree Should Make
In retirement, when it's wise to take fewer risks with your nest egg, some investments are just nuts.
By David Rodeck
-
Before You Invest Like a Politician, Consider This Dilemma
As apps that track congressional stock trading become more popular, investors need to take into consideration some caveats.
By Ryan K. Snover, Investment Adviser Representative
-
How to Put Together Your Personal Net Worth Statement
Now that tax season is over for most of us, it's the perfect time to organize your assets and liabilities to assess your financial wellness.
By Denise McClain, JD, CPA
-
Stock Market Today: Trump Retreats, Markets Rejoice
Stocks rally, yields soften, the dollar rises, and even beaten-down names enjoy the wages of potential trade peace.
By David Dittman
-
Tesla Stock Pops as Elon Musk Promises DOGE Draw Back
Tesla reported a sharp drop in first-quarter earnings and sales, as the EV maker suffered a backlash to its CEO's political ambitions.
By Karee Venema
-
Bouncing Back: New Tunes for Millennials Trying to Make It
Adele's mournful melodies kick off this generation's financial playlist, but with the right plan, Millennials can finish strong.
By Alvina Lo
-
Early-Stage Startup Deals: How Do Convertible Notes Work?
Some angel investors support early startups by providing a loan in exchange for a convertible note, which includes annual interest and a maturity date.
By Murat Abdrakhmanov
-
Stock Market Today: Stocks Soar on China Trade Talk Hopes
Treasury Secretary Bessent said current U.S.-China trade relations are unsustainable and signaled hopes for negotiations.
By Karee Venema
-
How Can Investors Profit From AI's Energy Use?
Global energy demand is expected to grow by leaps and bounds over the next several years as AI usage accelerates. Here's how to get a piece of the pie.
By Jacob Schroeder