Salesforce Inc. shares jumped 12.8% in extended trading after the company reported better-than-expected fiscal second-quarter results and raised its full-year outlook.
The San Francisco-based cloud software provider posted revenue of $11.35 billion for the quarter ended July 31, up 11% from a year earlier and exceeding the $11.32 billion consensus. Net income rose 87% to $3.53 billion, while earnings per share came in at $4.29. A $2.6 billion gain on strategic investments, primarily from its stake in AI startup Anthropic, contributed to the strong performance.
For the full fiscal year, Salesforce lifted its adjusted earnings guidance to a range of $16.67 to $16.71 per share, compared with the prior range of $14.06 to $14.12. Revenue guidance was increased to $46.1 billion to $46.4 billion, up from $45.9 billion to $46.2 billion previously. The midpoint of the new revenue range also surpasses the LSEG consensus of $46.11 billion.
The company also expanded its partnership with Anthropic, launching Claudeforce, a new plugin designed to integrate Anthropic’s Claude chatbot with Salesforce’s ecosystem. The plugin offers 37 pre-built sales skills, enabling users to draft emails, update records and perform other tasks directly within the chatbot interface. Salesforce embeds Anthropic’s AI models into its Agentforce platform, further embedding generative AI capabilities into its suite of enterprise tools.
Analysts at Citizens reiterated a Market Outperform rating with a $315 price target, noting that industry checks showed a rise in positive feedback to 50% in the fiscal second quarter from 22% in the first quarter. Truist Securities and Oppenheimer maintained bullish ratings ahead of the report.
Shares traded at $232 in after-hours dealings, following a 0.1% gain in the S&P 500, a 0.3% advance in the Dow Jones Industrial Average and a 0.2% rise in the Nasdaq Composite during regular trading.
