Salesforce Soars on Strong Q2 Earnings and Raised Guidance

Salesforce's shares surged by 18.9% in the afternoon session after the company reported better-than-expected second-quarter financial results and raised its full-year earnings guidance.

The software giant's revenue reached $11.35 billion, a 10.8% increase year-over-year, which matched Wall Street expectations. However, adjusted profit came in at an impressive $5.90 per share, beating consensus estimates by 80.4%. Adjusted operating income hit $3.87 billion, with a margin of 34.1%.

The company's AI business saw significant growth, with customer adoption of new AI functionalities increasing rapidly. CEO Marc Benioff highlighted the success of Agentforce, which reached annual recurring revenue of $1.5 billion, while Slackbot became the fastest-adopted AI product in Salesforce's history, reaching 1 million active users just five months post-launch.

Salesforce also announced a deeper partnership with Anthropic to integrate Claude directly into Slack and Salesforce workflows. Looking ahead, management raised its full-year adjusted EPS guidance by 18.5% to $16.69 at the midpoint, surpassing previous analyst expectations.