Salesforce Beats Q2 Estimates, Raises Full-Year Profit Guidance

Salesforce (NYSE:CRM) exceeded expectations with its second-quarter results and boosted its full-year profit outlook.

The cloud software giant reported adjusted earnings per share of $2.56, surpassing Street predictions of $2.35. Revenue for the quarter reached $9.33 billion, beating the expected $9.22 billion and marking an 8% year-over-year increase.

Subscription and support revenue, which represents the majority of Salesforce's business, grew 9% year-over-year to $8.76 billion. The company's current remaining performance obligation (cRPO), a key indicator of future revenue under contract, increased by 10% year-over-year to $26.5 billion.

CEO Marc Benioff highlighted the strong performance across revenue, cash flow, margin, and cRPO in Q2, which led to an upward revision in Salesforce's fiscal year operating margin and cash flow growth guidance.

For the upcoming third quarter, Salesforce projects revenue between $9.31 billion and $9.36 billion, below the Street consensus of $9.41 billion. The company maintained its full-year revenue guidance, which remains in the range of $37.7 billion to $38.0 billion.

Additionally, Salesforce raised its full-year adjusted EPS forecast to a range of $10.03 to $10.11, up from its previous outlook and above the analyst consensus of $9.89.