Salesforce Inc (NYSE:CRM, ETR:FOO) reported strong second-quarter results for fiscal year 2025, surpassing Wall Street expectations on both revenue and earnings, but issued a cautious revenue outlook for the third quarter.
For the quarter ending in July, Salesforce recorded revenue of $9.33 billion, a 9% year-over-year increase, and $100 million above analyst estimates.
The company reported adjusted earnings per share (EPS) of $2.56, beating expectations by $0.20 and reflecting a 20.8% increase from the same period last year.
Salesforce’s operating margin also improved by 2 percentage points year-over-year, reaching 19%.
Marc Benioff, Salesforce's CEO, emphasized the company's focus on "disciplined, profitable growth" in the face of economic uncertainties.
"Salesforce delivered strong Q2 results across revenue, cash flow, and margins. Our focus on disciplined, profitable growth has led to record operating margins, and we are well-positioned to drive future success with our Agentforce AI platform and strategic investments in AI," Benioff said.
Despite the strong quarterly performance, Salesforce provided guidance for Q3 revenue between $9.31 billion and $9.36 billion, slightly below analysts' expectations of $9.41 billion.
The company maintained its full-year revenue forecast of $37.7 billion to $38 billion, representing a 9% increase year-over-year, with a projected operating margin of 32.8%.
Salesforce also highlighted its ongoing capital return program, including $4.3 billion in share repurchases and $0.4 billion in dividend payments during the quarter.
The company’s current remaining performance obligation (RPO), a key indicator of future revenue, grew by 10% year-over-year to $26.5 billion.
Shares of Salesforce added 3.3% in afterhours trading Wednesday.