Salesforce beats earnings estimates, CFO Amy Weaver to step down

Salesforce shares rose 4% in extended trading on Wednesday after the business software maker reported robust fiscal second-quarter results that beat estimates and raised its full-year profit outlook.

The company also said Amy Weaver, its finance chief, will step down. She will remain at the company as the CFO until a successor is appointed and, after that, will stay on as an advisor.

Here is how the company did compared to LSEG consensus:

• Earnings per share: $2.56 adjusted vs. $2.36 expected
• Revenue: $9.33 billion vs. $9.23 billion expected

The company’s revenue grew 8% year over year during the quarter, which ended on July 31, according to a statement. Net income, at $1.43 billion, or $1.47 per share, was up from $1.27 billion, or $1.28 per share, in the same quarter a year ago.

With respect to guidance, Salesforce called for adjusted fiscal third-quarter earnings of $2.42 to $2.44 per share on $9.31 billion to $9.36 billion in revenue. Analysts surveyed by LSEG had expected $2.43 in earnings per share on $9.41 billion in revenue.

Management called for $10.03 to $10.11 per share in adjusted fiscal 2025 earnings, with $37.7 billion to $38 billion in revenue. Last quarter’s forecast was $9.86 to $9.94 per share and revenue from $37.7 billion to $38.0 billion. The LSEG consensus was $9.89 in adjusted earnings per share, with $37.84 billion in revenue.

During the quarter, Salesforce said in the fall it will start testing an Einstein Copilot for Merchants that can compose product pages and promotions with a few words of human input.

Earlier this month, activist investors Starboard and ValueAct both disclosed increases in their Salesforce positions. Both bought shares before the company announced a widening of its adjusted operating margin sooner than planned last year.

Excluding the after-hours move, Salesforce shares are down 2% so far in 2024, while the S&P 500 index has gained 17% over the same period.

Executives will discuss the results with analysts on a conference call starting at 5 p.m. PT.

This is breaking news. Please check back for updates.

Correction: Updated to reflect correct full-year revenue guidance.