Salesforce jumps 12% after AI gains lift results

Salesforce shares climbed 12% in after-hours trading on Wednesday after the company reported quarterly results that topped Wall Street expectations and lifted its guidance for the rest of the year. The cloud software group also disclosed a large gain tied to one of its strategic investments, adding to the upbeat tone around the update.

Revenue growth and profit surge

The company said fiscal second-quarter revenue rose 11% from a year earlier, while net income increased sharply to $3.53 billion from $1.89 billion in the same period last year. Earnings per share rose to $4.29 from $1.96, reflecting both stronger operating performance and the investment-related boost. Salesforce also said free cash flow jumped 81% to $1.10 billion, comfortably ahead of expectations tracked by StreetAccount.

A major contributor to the profit increase was a $2.6 billion gain on strategic investments linked to Anthropic, the artificial intelligence startup. Anthropic’s valuation has risen sharply this year, and other large technology investors have also recently reported gains tied to their stakes in the company. Salesforce’s latest results show how those holdings can influence reported earnings even as its core business continues to expand.

Outlook and AI product push

For the fiscal third quarter, Salesforce forecast adjusted earnings per share of $3.42 to $3.44 and revenue of $11.42 billion to $11.50 billion. Analysts surveyed by LSEG had expected $3.38 a share on revenue of $11.41 billion. For the full fiscal year, the company now expects revenue of $46.1 billion to $46.4 billion, which implies roughly 11% growth at the midpoint and is slightly above its previous range.

The company also used the announcement to highlight deeper ties to Anthropic. It introduced a plugin for Claude that can draft emails for sales teams, surface relevant information and update customer records through chat. Salesforce said the quarter also included a $1.6 billion contract from the U.S. Department of Veterans Affairs and plans to buy customer service software maker Fin for $3.6 billion, with that deal expected to close during the fiscal third quarter.

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