On Wednesday, Salesforce Inc (CRM  ) surpassed Wall Street estimates with its quarterly results, with its shares rising 6% during extended trading in response. The software giant reported growth across all five of its product categories as it continues its growth path fueled by AI.

Together with Amazon.com Inc (AMZN  ), and Alphabet (GOOG  ), Salesforce provided a wave of optimism regarding recovery in technology spending for the remaining half of the year.

Fiscal Second Quarter Highlights

For its fiscal second quarter that ended on July 31st, Salesforce generated $8.60 billion in revenue that grew 11% YoY, topping Refinitiv's consensus estimate of $8.53 billion. Salesforce earned a net income of $1.27 billion, or $1.28 per share, improving significantly from last year's comparable quarter when it earned $68 million, or 7 cents per share. When adjusted, EPS amounted to $2.12, also topping Bloomberg's estimate of $1.90. Adjusted operating margin amounted to 31.6%, also exceeding Bloomberg's 28.2% estimate. Free cash flow amounted to $630 million, leaving behind Bloomberg's estimate of $445.1 million.

Lifted Full Year Guidance

For the undergoing, third, quarter, Salesforce guided for revenue to be in the range between $8.70 billion and $8.72 billion while calling for adjusted EPS between $2.05 and $2.06. Salesforce's both top and bottom line guidance topped Refinitiv's estimate of adjusted EPS of $1.83 per share on revenue of $8.66 billion.

Moreover, Salesforce lifted its full-year guidance as its adjusted earnings per share outlook is between $8.04 to $8.06 on revenue range between $34.7 billion and $34.8 billion. Back in May, Salesforce anticipated a full year revenue range between $34.5 billion and $34.7 billion. It also raised its full year operating margin guidance from 28% to 30%.

The AI Wars

During the reported quarter, Salesforce introduced AI enhancements to its Cloud applications. Its Sales Cloud and Service Cloud users could get them for a monthly fee of $50 per user. Moreover, Salesforce announced an AI Cloud that will include marketing and data analysis tools, promising to bring trusted generative AI to enterprises. With the power of AI, Salesforce delivered stronger-than-expected second results and lifted its guidance as it provided optimism like Amazon and Google regarding a brighter remaining half of the year. One month ago, Amazon also forecasted a bright third quarter with resilient cloud sales. Aiming to retain its cloud crown, Amazon also answered to AI front-runners, including Google and Microsoft (MSFT  ) in touting the technology it is able to offer. But no one in the AI game seems scared of its rivals, including Salesforce that is confidently marching ahead into the AI era.

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