Second-quarter revenue rose 11%, ignoring currency moves, to $11.3bn (as expected). Growth was driven by a 11% increase in Subscription and Support, which more than offset a low-single-digit decline in the smaller Professional Services division.
Underlying operating profit rose 10% to $3.9bn ($3.8bn expected).
Free cash flow rose 81% to $1.1bn as cash generation improved significantly. Net debt, including lease liabilities, stood at $30.3bn at the end of the quarter.
The group returned $364mn to shareholders in dividends and continues to execute its $25bn share repurchase programme which is expected to complete in October 2026.
Third-quarter revenue is expected to be $11.4-11.5bn, while full-year revenue guidance was upgraded to $46.1-46.4bn.
The shares were up 13.0% in after-hours trading.
Our view
HL view to follow.
Salesforce key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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