Salesforce Stock Skyrockets 40% After Crushing Q2 Earnings Expectations
San Francisco-based customer relationship management (CRM) software specialist Salesforce saw its share price skyrocket by 40% in August. This significant gain comes after the company's fiscal Q2 earnings report, which exceeded expectations and provided a boost to investor confidence. The quarterly results showed non-GAAP earnings of $5.90 per share on sales of $11.35 billion, surpassing analyst estimates.
The growth in Salesforce's revenue was driven by an 11% year-over-year increase, with the company's free cash flow (FCF) rising 81% to reach $1.1 billion. This significant improvement in FCF helped alleviate concerns that the business was on track to be disrupted by AI.
In addition to its strong quarterly report, Salesforce also raised its full-year sales and earnings targets. The company now expects full-year sales between $46.1 billion and $46.4 billion, up from previous guidance of $45.9 billion to $46.2 billion. Adjusted earnings per share are projected to be between $16.67 and $16.71.