Salesforce Inc (NYSE:CRM) shares are trading lower in Wednesday's after-hours session after the company reported strong financial results, but issued guidance below analyst estimates.
Salesforce said fiscal second-quarter revenue jumped 22% year-over-year to $7.72 billion, which beat average analyst estimates of $7.7 billion, according to Benzinga Pro. The cloud company reported quarterly earnings of $1.19 per share, which beat average analyst estimates of $1.02 per share.
Salesforce also announced that its board authorized a buyback of up to $10 billion.
"We had another strong quarter, with revenue of $7.7B growing 22% year-over-year and 26% in constant currency, showing yet again the durability of our business model," said Marc Benioff, chair and co-CEO of Salesforce.
"And, we're thrilled to initiate our first-ever share repurchase program to continue to deliver incredible value to our shareholders on our path to $50 billion in revenue in FY26."
Salesforce expects third-quarter revenue to be between $7.82 billion and $7.83 billion versus the estimate of $8.07 billion. The company expects third-quarter adjusted earnings to be between $1.20 and $1.21 per share versus the estimate of $1.29 per share.
Salesforce said it expects full-year revenue to be between $30.9 billion and $31 billion versus the estimate of $31.73 billion. The company expects full-year adjusted earnings to be between $4.71 and $4.73 per share versus the estimate of $4.75 per share.
CRM Price Action: Salesforce has a 52-week high of $256.87 and a 52-week low of $154.55.
The stock was down 4.26% in after hours at $172.35 at press time.
Photo: courtesy of Salesforce.
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