In this articleCRMINFA your favorite stocksCREATE FREE ACCOUNTMarc Benioff, co-founder and CEO of Salesforce, sits for an interview in San Francisco on April 25, 2025.David Paul Morris | Bloomberg | Getty ImagesSalesforce issued disappointing guidance on Wednesday, even as earnings and revenue topped estimates for the fiscal second quarter.
The stock dropped 4% in ext trading.Here's how the company did in comparison with LSEG consensus:Earnings per : $2.91 adjusted vs. $2.78 expectedRevenue: $10.24 billion vs.
$10.14 billion expectedRevenue increased 10% from $9.33 billion a year earlier, according to a statement.
Net income rose to $1.89 billion, or $1.96 per , from $1.43 billion, or $1.47 per , a year ago.For the fiscal third quarter, management called for $2.84 to $2.86 in adjusted earnings per on $10.24 billion to $10.29 billion in revenue.
Analysts polled by LSEG had been looking for $2.85 per on $10.29 billion in revenue.Salesforce maintained its full-year revenue outlook but now sees higher earnings.
The company is targeting $11.33 to $11.37 in adjusted earnings per on $41.1 billion to $41.3 billion in revenue.
The consensus estimate from LSEG was $11.31 in earnings per and $41.2 billion in revenue.
The forecast in May included $11.27 to $11.33 in adjusted earnings per .Salesforce has fallen out of favor on Wall Street this year due to an ext stretch of meager revenue growth, which has been stuck in the single digits since mid-2024.
While the company regularly touts its investments in artificial intelligence and the advancements in its software and systems, it hasn't been lifted by the artificial intelligence boom in the same way as many of its peers.Going into Wednesday's report, Salesforce was down 23% for the year, lagging behind all but one stock in the Dow and trailing all other large-cap companies.The ratio of Salesforce's enterprise value to its free cash flow has reached a 10-year low because of fears of disruption from AI, according to analysts at Jefferies, who have a buy rating on the stock.
Salesforce is trying to counter the pressure by selling its Agentforce AI software that can automate the handling of customer service questions.During the fiscal second quarter, Salesforce said it was planning to increase the cost of some ducts and announced its intent to acquire data management software company Informatica for $8 billion.Executives will discuss the results with analysts on a conference call starting at 5 p.m.
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