Salesforce reported adjusted earnings per share of $5.90 and revenue of $11.35 billion for the fiscal second quarter, exceeding Wall Street expectations of $5.90 EPS and $11.32 billion in revenue. The company's revenue grew 11% year-over-year, and net income rose 87% to $3.53 billion, largely due to a $2.6 billion gain from its investment in Anthropic, which was valued at $965 billion in May.
Salesforce's free cash flow also saw a significant increase of 81% to $1.10 billion, surpassing the consensus estimate of $643.2 million. For the upcoming fiscal third quarter, Salesforce anticipates adjusted earnings between $3.42 and $3.44 per share and revenue between $11.42 billion and $11.50 billion, both slightly above analyst expectations.
The company has raised its full-year earnings guidance to a range of $16.67 to $16.71 per share on projected revenue of $46.1 billion to $46.4 billion. Additionally, Salesforce introduced Claudeforce, a new AI plugin for sales teams, and secured a $1.6 billion contract with the U.S. Department of Veterans Affairs.
Despite the positive results, Salesforce shares are still down 22% year-to-date, contrasting with a 12% gain in the S&P 500. The market's reaction reflects ongoing investor concerns about the impact of generative AI on traditional software companies, which will likely be a topic of discussion during the upcoming analyst conference call